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MCQ Self Challenge # 0082 on Export of Goods under GST

Export of Goods under GST

 

Dear Professional Seniors & Friends,
Warm Greeting!

Here is the Next post of #MCQ on concept based practical professional knowledge on Export of Goods under GST in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 82.1: Mr X supplies goods to international passengers from Duty free shops located in security hold areas of International Airport which are outside the custom frontiers of India. Is Mr X liable to pay GST?

A. No, as it is a case of Export.
B. Yes as it will not be a case of Export.
C. No, as the goods are moving outside custom frontier of India.
D. None of the Above.

MCQ 82.2: What if in the above case, Mr, X supplies goods to international passenger directly at his residence?

A. No, as it is a case of Export.
B. Yes as it will not be a case of Export.
C. It is deemed Export of Services.
D. None of the Above.

Sincere Regards

CA Sanjay Kumar Agrawal
Mobile: 9810116321

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Answer MCQ Self Challenge # 0082

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

This post of MCQ is on provisions relating to export of goods under GST.

 

Answer to MCQ 82.1: B) Yes as it will not be a case of Export.

 

Answer to MCQ 82.2: A) No, as it is a case of Export.

 

 Practical Analysis for MCQ 82.1:-

  • As per Section 2(5) of the IGST Act export of Goods takes place when the goods are taken to a place outside India.
  • As per Section 2(56) of CGST Act, India includes its territorial Waters and airspace above its territory and territorial waters.
  • Hence, Goods are said to be exported only when they cross the territorial waters of India and in the case of Air, the export will be completed only when the goods cross the airspace limits of the territory or territorial waters of India. The goods cannot said to be exported merely on crossing customs frontiers of India.
  • In the present case supply of goods to passengers going abroad, by the applicant from their retail outlet situated in the security hold area of the International Airport may be taking place beyond the custom frontiers of, however the said outlet is not outside India the same is in the territory of India as defined in Section 2(56) of the CGST Act 2017.
  • Hence the said case will not fall under exports, and same shall be govern as per normal provisions.
  • Place of supply in this case will be in India as per Section 10(1)(c), hence taxable.

 

Based on the above analysis, Correct answer to MCQ 82.1: B) Yes as it will not be a case of Export.

 

Practical Analysis for MCQ 82.2:-

 

  • In this case goods are taken to a place outside India. Hence this will be export of goods as per Section 2(5) of CGST Act.
  • Hence, the same is not leviable to tax as it will be a case of Zero rated supply as per Section 16 of IGST Act.

 

Based on the above analysis, Correct answer to MCQ 82.2 : A) No, as it is a case of Export..

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

 

CA Sanjay Kumar Agrawal

Mobile: 9810116321

 

To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal

 

For All MCQ post please click on:

Webpage: http://www.casanjay.me/

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Linkedin: https://www.linkedin.com/in/ca-sanjay-kumar-agrawal/

 

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