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funeral including transportation of the deceased are out of scope of supply. Thus taxable territory to another place in the non-taxable territory without such goods
there shall be no levy of GST on such activity. entering into India.
ii) As per section 7 read with Schedule III para 5 of CGST Act , Sale of land is out of Thus, it seeks to exclude from the tax net such transactions which involve CH 2
scope of supply and hence there shall be no levy of GST on such activity. movement of goods, caused by a registered person, from one non-taxable territory to
iii) As per section 7 read with Schedule III para 5 of CGST Act, Sale of building is out another non-taxable territory.
of scope of supply and hence there shall be no levy of GST on such activity. Therefore, in view of the above-mentioned provisions, the said activity is not

a supply. Hence, it is not leviable to GST since “supply” is the taxable event for
CCP 02.18.49.00 (Para 7) chargeability of GST. Therefore, since the transaction is not leviable to GST, the
question of place of supply does not arise in the given case.
Mr. A imported a goods from UK. Worth ` 280000 on 22/11/2018. Same goods are Charge of Tax & Concept of Supply
deposited in public custom licensed warehouse in Mumbai by executing bond.
CCP 02.18.51.00 (Para 8)
After depositing within 30days Mr. A sold the same good to Mr. B (pune) for `
Mohandas International entered into a transaction for import of goods from a
310000 from custom licensed warehouse in Mumbai. Explain whether sale by Mr.
vendor located in Italy. Due to financial issues, Mohandas International was not
A to Mr. B is treated as supply and GST is leviable or not? When GST is payable
in a situation to clear the goods upon payment of import duty. Mohandas
on such warehoused goods?
International sold the goods to Radhakrishnan Export House by endorsement of
Answer: As per section 7 read with para 8(a) of schedule-III supply of custom
title to the goods, while the goods were in high seas. The agreement further
licensed warehouse goods to any person before clearance for home consumption is
provided that Mohandas International shall purchase back the goods in future
not treated as supply. Therefore in a given case supply by Mr. A to Mr. B is not
from Radhakrishnan Export House. Discuss the taxability of transaction(s)
treated as supply and GST is not payable.
involved, under the GST law.[ICAI MATERIAL]
But when goods are cleared from custom licensed warehouse by Mr. B he
Answer- As per Schedule III of the CGST Act , high seas sale transactions i.e. supply
shall pay IGST to govt. For importation of goods as an importer at the time of filling
of goods by the consignee to any other person, by endorsement of documents of title
Bill of entry.
to the goods, after the goods have been dispatched from the port of origin located

CCP 02.18.50.00 (Para 8) outside India but before clearance for home consumption shall not be considered as
supply under GST. Thus, the sale of goods by Mohandas International to
Mr. Z, a supplier registered in Hyderabad (Telangana), procures goods from
Radhakrishnan Export House in high seas shall not be liable to GST.
China and directly supplies the same to a customer in US. With reference to the
Further, the import duty including IGST shall be payable by Radhakrishnan
provisions of GST law, examine whether the said activity of supply of goods by
Export House at the time of clearance of goods at port of import. In case the goods
Mr. Z to customer in US is taxable under GST. If yes, determine the place of
are sold back by Radhakrishnan Export House to Mohandas International at a
supply of the same. (CA Final RTP Nov 19)
subsequent point of time, the same shall be treated as normal domestic sale
Answer:- Schedule III to the CGST Act specifies transactions/ activities which shall
transaction and GST shall be applicable on the same subject to other conditions
be neither treated as supply of goods nor supply of services. A new activity has been
prescribed under GST Law.
added in the said Schedule III namely, supply of goods from a place in the non-

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