Swati Joshi (Cost Accountant) (44 Points)
05 March 2018I need information on below
I need to send Raw mateial to USA for testing purpose . This material will be consumed there while testing.
How to treat this under GST. and what would be the procedure for the same.
Also mention the relevent section in GST law I need to refer.
Thanks in advance for your help
RAMESH KUMAR SINGLA
(PROFESSIONAL)
(1777 Points)
Replied 05 March 2018
It is zero rated supply for export in terms of section 16 of IGST Act. you will be eligible to avail ITC in respect of tax charged on inputs/input services.The place of supply is outside India. The goods may be exported under bond/lut (under claim for drawback) or on payment of IGST which can be claimed as refund. Apparently, there would be no foreign exchage remittance. You should take exemption from RBI in this regard.
VINEETH.R
(FINANCIAL ACCOUNTANT)
(458 Points)
Replied 05 March 2018
But in this case, this is for testing purpose, I think there is no trade would happen between the parties. So should they want to revise the itc claimed for that raw material ? 
RAMESH KUMAR SINGLA
(PROFESSIONAL)
(1777 Points)
Replied 05 March 2018
Yatharth Gupta
(2 Points)
Replied 05 March 2018
Shash Kant
(Asst. Mgr.)
(22 Points)
Replied 27 May 2024
Mr. Vineeth, You are right. As per Circular No. 92/11/2019-GST dated 07.03.2019 free samples are not considered as "Supply". There is no considertaion involved so material will be sent on delivery challan and ITC will be reversed. Material can be moved on Tax invoice after charging GST.
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