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GST Treatment on Diamond imported to export back
for cutting and polishing
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(No Transcript)
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GST Treatment on Diamond imported

• In this context of GST Treatment on Diamond
  imported, Central Board of Indirect Taxes and
  Customs has received several representations from
  trade and industry seeking clarifications in
  relation to the determination of POS in the
  following cases
• Services rendered on goods temporarily imported
  in India  Place of supply in case of services
  rendered on unpolished diamonds received from
  abroad, which are exported after cutting,
  polishing etc.

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1. Services in relation to activities performed
on unpolished diamonds which are temporarily
imported into India

• Clarification by CBIC
• The CBIC has clarified the following
• Cutting and polishing activity are performed on
  the diamonds temporarily imported into India,
  which are not put to any use in India.
• The Place of supply should not be determined as
  per Section 13(3)(a) of the IGST Act i.e.,
  location where services are actually performed,
  on account of the exception available for
  services in respect of temporary import of goods
  for subsequent export (Second proviso to Section
  13(3)(a).
• The Place of supply should be determined as per
  the provisions of Section 13(2) of the IGST Act,
  as under
• Recipient Location of Recipient (if address is
  available)
• Location of supplier (if address of Recipient is
  not available)

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2. Services by ports

• Clarification by CBIC
• The CBIC has clarified the following
• The services are not related to an immovable
  property. Hence, the provisions of Section 12(3)
  pertaining to services in relation to an
  immovable property would not be applicable.
• In the absence of a specific provision under
  Section 12 and 13 of the Integrated Goods and
  Services Tax Act, 2017 (IGST Act), the POS of
  these services should be determined as per the
  residuary provisions under Section 12(2) and
  Section 13(2) of the IGST Act as under