No tax invoice is required for goods taken out of India on consignment basis for exhibitions or other export promotion events as they do not constitute a supply under the Goods and Services Tax (GST) and there is no consideration received, the Central Board of Indirect Taxes and Customs (CBIC) clarified on Monday.
"Since taking such goods out of India is not a supply, it necessarily follows that it is also not a zero-rated supply. Therefore, execution of a bond or a letter of undertaking as required under section 16 of the IGST Act is not required," it said in a statement.
The movement of these goods will be accompanied by a delivery challan issued in accordance with provisions contained in rule 55 of the CGST rules. These goods are required to be either sold or brought back within six months from the date of removal.
The CBIC said the supply will be deemed to have taken place if such goods are neither sold abroad nor brought back within the period of six months. In this case, the sender will issue a tax invoice on the date of expiry of six months from the date of removal in respect of the quantity of goods which have neither been sold nor brought back.
The benefit of zero-rating including refund will not be available in respect of such supplies, said the statement adding that no tax invoice is required to be issued for goods which are brought back to India within six months.
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