Applicability of gst on high seas sales

This query is : Resolved

Rakesh Mittal (Querist)
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11 May 2017 Dear Professionals,
Kindly arrange to give your valuable feedback on appended issue;
Whether GST is applicable on High seas sales or not ? If no then please share relevant provision. If Yes then i have further query.

where A is an importer of goods and sell to B on HSS. Where B do further HSS to C. C is filing a Bill of entry.
Q: Whether GST will be applicable on transaction from A to B ? And who will be liable to collect and deposit ?
Q Whether GST will be applicable on transaction from B to C? Who will be liable to collect and deposit ?

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 May 2017 Not applicable.
High Sea Sale is to be treated as inter state trade or commerce under S.3(3) Of IGST. However as per s.5(1) proviso, tax is chargeable at the point of import. As per S.4(1) of IGST, high sea sale can not be treated as intra state supply.