Clarifications on Goods Sent/ Taken Out of India for Exhibition or Consignment
<p><span>The Government of India has issued clarifications regarding the procedure for goods sent or taken out of India for exhibition or on consignment basis for export promotion. The key points from Circular No. 108/27/2019-GST are as follows:</span></p><ol start="1"><li><span><strong>No Supply Consideration</strong>:</span><ul><li><span>Goods sent or taken out of India for exhibition or on consignment basis without consideration do not constitute a supply under Section 7 of the CGST Act.</span></li></ul></li><li><span><strong>Documentation and Records</strong>:</span><ul><li><span>Registered persons must maintain a record of such goods as per the prescribed format and issue a delivery challan in accordance with Rule 55 of the CGST Rules.</span></li></ul></li><li><span><strong>Six-Month Timeframe</strong>:</span><ul><li><span>Goods must be sold or brought back within six months from the date of removal. If not, the supply is deemed to have taken place on the expiry of six months, and a tax invoice must be issued accordingly.</span></li></ul></li><li><span><strong>Tax Invoice Issuance</strong>:</span><ul><li><span>If goods are sold within the six-month period, a tax invoice must be issued on the date of sale. If not sold or brought back, a tax invoice must be issued on the expiry of six months.</span></li></ul></li><li><span><strong>Refund Claims</strong>:</span><ul><li><span>Refund claims can be preferred even if goods were initially sent out without execution of a bond or LUT, provided other eligibility criteria are met. Refund claims cannot be made under Rule 96 of the CGST Rules as the supply takes place after the goods have been sent out.</span> <a href="https://cms.plasament.com/storage/circular-cgst-108.pdf">circular-cgst-108</a><br> </li></ul></li></ol>