Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 21/2019 to clarify the payment of integrated tax on the reimport of goods which had been earlier exported either for participation in exhibition or on consignment basis.
Key points of the Circular are:
- It is clarified that the activity of sending / taking the specified goods (i.e. goods sent / taken out of India for exhibition or on consignment basis for export promotion except the activities satisfying the tests laid down in Schedule I of the CGST Act, 2017) out of India do not constitute supply within the scope of Section 7 of the CGST Act,2017 as there is no consideration involved and the same will also not be considered as zero rated supply and no tax would be payable on the same.
- It has further been clarified that in the case of re-import of specified goods since no integrated tax was required to be paid for at the time of taking these specified goods out of India as the activity was not considered to be supply, hence the condition requiring payment of integrated tax at the time of reimport of goods is not applicable.
- It has also been clarified, that in cases where exports have been made to related or distinct persons or to principals or agents for participation in exhibition or consignment basis and such goods are returned after participation in exhibition or reimport after participation in exhibition within 6 months of date of delivery challan then no integrated tax will be required to be paid on such reimport.
Source: Central Board of Indirect Taxes & Customs
