Consideration and the levy of export tax

Exporters should review all situations where goods are sent abroad without any payment made or to be made

When goods are sent abroad for display in exhibitions or for approval of customers, the element of consideration (payment or benefit) is absent at the time of export. Hence, the Central Board of Indirect Taxes and Customs (CBIC) has said, these would not attract Integrated Goods and Services Tax (IGST). Only when the said goods are approved and sold does the actual supply takes place and GST become payable.

This could pose some practical difficulties for exporters. Most of them treat all such export as zero-rated and send the goods without payment of IGST, under a legal undertaking (LUT) or on