Ministry of Finance has announced that 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 as re-import. This comes
into effect after several representations made by the trade and industry to the
Ministry of Finance, says a press release from GJEPC.
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.
Commenting on this development, Mr Pramod Kumar Agrawal, Chairman, The Gem and Jewellery Export Promotion Council (GJEPC) said, “The entire gem & jewellery industry is thankful to the Govt. for coming up with this trade friendly step as this will further boost the promotional activities globally. 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 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.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished