Exemption for intra-State supply of gold

Exemption for intra-State supply of gold

Notification No.26/2018-Central Tax (Rate) – Exemption for intra-State supply of gold when supplied by Nominated Agency under the scheme for ‘Export Against Supply by Nominated Agency’ (“FTP Gold Export Scheme”)

The CBIC has provided an exemption to intra-State supply of gold by Nominated Agency to a registered person (‘recipient’) subject ot the following conditions:

  1. The supply is in accordance with the FTP Gold Export Scheme (as referred to in paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of Handbook of Procedures).
  2. The Nominated Agency and the recipient shall follow the conditions and observe the procedures as specified in the Foreign Trade Policy read with Handbook of Procedures.
  3. The Recipient shall export the jewellery made out of such gold within a period of 90 (ninety) days from the date of supply of gold to such recipient.
  4. The Recipient and shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) alongwith the invoice for exports to the Nominated Agency within a period of 120 (one hundred and twenty) days from the date of supply by the Nominated Agency.
  5. Wherever the proof of export is not produced within the the 90/ 120 days period as mentioned above, the Nominated Agency shall pay the amount of CGST and SGST on the quantity of gold not exported, along with applicable interest from the date when the CGST and SGST was payable, but for the exemption.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Related Post
FDI Compliances Under FEMA (4)
Foreign Direct investment
CA. Kapil Mittal

6 FDI Compliances Under FEMA

Ever since coming into existence, FEMA has acted as a crucial source in India for the growth and development of different sectors. FEMA’s main aim is to promote international trade and orderly growth, balance payments, and maintain India’s international-exchange market. Here is the list of main compliance to be followed under FEMA’s provisions.

Read More »
Specific transactions for PAN
Expat Taxation
CA. Kavit Vijay

Specific transactions for which an expatriate will be required to obtain PAN

PAN is an identity provided by the income tax authorities to each taxpaying individual , which is necessary for each one who is needed to file income tax return, and for people who wish to deal in the financial transaction. Expatriates wanting to work in India or to indulge in any business transaction with a company based in India would also need a PAN for such transactions.

Read More »
Profit Split Method in India
TP valuation Methods
CA. Kavit Vijay

Transfer Pricing: Profit Split Method

The Profit Split Method is one of the key methods used in transfer pricing which is typically used when both or all enterprises involved in the transaction have made a significant contribution towards the supply of either goods or provision of services.This popular method begins with identifying the profits sharing ratio between the associated enterprises relative to the contribution that each enterprise has made to the transaction.

Read More »

Want to talk to us

Leave your Name, email, Phone number along with what you are looking for in message box or you can call us at 011-41715118

V J M & Associates LLP

Contact Us