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.
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