Question61: Is there any GST on high sea sale and purchase if no , then where to show the figures in GSTR-3b

Answer:

To answer the question first we should know  that  What is high sea sale? It is if a buyer wants to sell his goods/consignment to a third party before arrival of goods in territorial jurisdiction of importing country but after sailing of vessel from load port such sale is known as high sea sale. In other words ownership of goods is transferred when the goods are in transit. According to Preamble of the GST Act, it is applicable to the whole of India i.e. it will become applicable after the goods enter territorial jurisdiction of India. In high sea sale, as the sale takes place before goods  enter territorial jurisdiction of India, the law of GST is not applicable. The said law will apply to the buyer of goods at high sea who will ultimately file Bill of Entry to import the goods into India and at the time of import.   He will have to discharge applicable Customs duty and Integrated tax.So it will not come under exempt or nil sale the information to be given in return .   (Reply dt. 04/10/2017)