High sea sales & Merchant trade transaction

Hi all...!!!

i have a query

whether itc is available on Inputs and input services for high sea sales and merchant trading transactions evenif there is no corresponding gst payable..?

please quote whether there is any supporting notification for the same

Replies (8)
No ..you can not claim itc as it is non gst sale because high sea sale is non gst sale..if you have taken then you have to reverse that input
No Sir. You cannot claim ITC in this case.

Both HIGH SEA SALES and MERCHANT TRADING is neither treated as SUPPLY of Goods or Supply of Services. Refer Entry 8 of SCHEDULE III of the CGST Act 2017. Since these transactions does not constitute a SUPPLY, so there is no question regarding claiming ITC as GST is not leviable.
1.Yes ITC is available to the merchant exporter on goods procured at a concessional rate by him, circular no:37/11/2018 dated :15.03.2018, even the person making a supply at a concessional rate to the merchant exporter can take credit on inputs procured by him
2.In the case of high sea sales , they are neither supply of goods nor service as per schedule 3, as there is no specification for reversal and not included in the value of exempt supplies under rule 42 and 43 , explanation to 17(3) of the CGST act, no need to reverse credit, I. e. credit can be taken

my assessee is buying goods say for eg from china and exporting to turkey

so he is not paying any gst

the only input he has is on outward remittance on bank commission

same is the case of highsea sales also

Buying in the sense importing from China on payment of IGST, and then exporting?

No 

it is out to out 

goods never reached India

But still there is no specific provision asking reversal, but from a conservative point of view do not utilise the credit. Thank you.

ok thanks for replying!!!

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