Participate In MCQ Challenge On Export Of Goods Under GST

MCQ SELF CHALLENGE # 0082 ON EXPORT OF GOODS UNDER GST

Dear Professional Seniors & Friends,

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Here is the Next post of WMCQ on concept-based practical professional knowledge on the Export of Goods under GST in a unique manner to be self-answered by participants. The detailed answers to these MCQs shall be posted the 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 the International Airport which are outside the customs frontiers of India. 2s 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 the 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.

Answer MCQ Self Challenge # 0082

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

Answer to MCQ 82.1:

El Yes as it will not be 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 of India.
• As per Section 2(56) of the CGST Act, India includes its territorial Waters and airspace above its territory and tentorial 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 the 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 customs frontiers of however the said outlet is not outside India the same is in the territory of India as defined in Section 2(55) of the CGST Act 2017
• Hence the said case will not fall under exports, and the same shall be governed 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

Answer to MCQ 82.2:

A) No, as it is 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 the export of goods as per Section 2(5) of the 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 the 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 a change of facts, the answer may be different Please do not treat this as a professional opinion: you can definitely have your own opinion.)

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321