Monday, July 22, 2019

Gems and Jewellery Carried for International Exhibitions now Exempted from IGST


By Samachar Vishesh News
Chandigarh 22nd July:- The gems and jewellery industry will be breathing a sigh of relief, as the Ministry of Finance 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 Ministry of Finance for exemption of IGST for the gems and jewellery carried for exhibition purpose.
The statement from the Government of India clarified that that the activity of sending / taking the goods out of India for exhibition or on consignment basis for export promotion do 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.
The Circular from the Ministry of Finance also clarifies that activity of sending/taking the goods out of India for exhibitions or on consignment basis for export promotion will not be considered as supply.

No comments:

Post a Comment