No GST on gems meant for exhibitions abroad

retail
By retail July 20, 2019 18:13 Updated

No GST on gems meant for exhibitions abroad

The gems and jewellery industry has heaved a sigh of relief, as the finance ministry has announced no IGST will be levied on gem and jewellery carried outside of the country for exhibition purpose. Till now, gem & jewellery which was being carried outside of the country even for exhibition/ consignment purpose was attracting IGST at reimport.

This comes into effect after several representations made by the trade and industry to the finance ministry for exemption of IGST for the gems and jewellery carried for exhibition purpose.

The statement from the government clarified that that the activity of sending/taking the goods out of India for exhibition or on consignment basis for export promotion does not constitute as supply as the said activity does not fall within the scope of section 7 of the CGST Act as there is no consideration at that point in time. Since such activity is not a supply, the same cannot be considered as “Zero Rated Supply‟ as per the provisions contained in section 16 of the IGST Act.

Commenting on this development, Mr Pramod Kumar Agrawal, chairman, Gem and Jewellery Export Promotion Council (GJEPC) said, “We appreciate and welcome this industry-friendly step taken by the government. As the apex body of the industry, while making representations we have not left any stone unturned in our genuine effort towards resolving this issue. The move will definitely provide respite to our member exporters.” 

The circular from the finance ministry also clarifies that activity of sending/taking the goods out of India for exhibitions or on a consignment basis for export promotion will not be considered as supply.

Courtesy: Economic Times
retail
By retail July 20, 2019 18:13 Updated
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment
View comments

Write a comment

<

Subscribe to Our Mailing List



Advertisement