MY CLIENT WANTS TO SEND HIS GOODS FOR EXHIBITION OUT OF INDIA. PLEASE CLARIFY IN FOLLOWING

1) WHAT ALL DOCUMENTS NEED TO BE ISSUED WHILE EXPORTING THE GOODS

2) WILL EWAY BILL BE NECESSARY

3) IF HE SELLS SOME GOODS WILL REFUND BE AVAILABLE

4) WHAT DOCUMENTS ARE NEEDED WHILE IMPORTING THE SAME GOODS BACK TO INDIA?

5) WILL GST NEED TO BE PAID ON THE GOODS SOLD OUTSIDE INDIA DURING EXHIBITION

Reply—

1) The said activity is in the nature of “sale on approval basis” wherein the goods are sent / taken outside India for the approval of the person located abroad and it is only when the said goods are approved that the actual supply from the exporter located in India to the importer located abroad takes place. The activity of sending / taking specified goods is covered under the provisions of sub-section (7) of section 31 of the CGST Act read with rule 55 of Central Goods & Services Tax Rules, 2017.

The specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules.

2) Yes e-way bill is necessary.

3) When the specified goods sent / taken out of India have been sold fully or partially, within the stipulated period of six months, as laid down in sub-section (7) of section 31 of the CGST Act, the sender shall issue a tax invoice in respect of such quantity of specified goods which has been sold abroad, in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules. Refund can be claimed after he has issued the tax invoice.

4) Same kind of documentation which was used at the time of sending goods out of India.

5) The specified goods sent / taken out of India are required to be either sold or brought back within the stipulated period of six months from the date of removal as per the provisions contained in sub- section (7) of section 31 of the CGST Act.

The supply would be deemed to have taken place, on the expiry of six months from the date of removal, if the specified goods are neither sold abroad nor brought back within the said period.

For more details you can refer Circular no. 108/27/2019-GST Dated 18th July, 2019.