A sale or purchase of goods shall be deemed to take place in course of export of goods out of the territory of India only if:-
- Sale or purchase occasions such export, or
(Example-Direct export from India to some other country)
- Sale or purchase is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India, or
(Example-Goods are going outside India and Sale made during their movement outside India)
- it is penultimate sales prior to export
(Sale to exporter who sells it outside state)
Note:-
Central Sales tax is not imposed on Sale in course of export
Penultimate sale is exempt if
- There is pre-existing agreement with foreign party for export
- Penultimate sale is made after such agreement
- Same goods which are sold in penultimate sale must be exported. However, it may not be in same form (some processing or packaging may be allowed)
- Buyer (Exporter) has to give H form to Seller
Special Case in case of Aeroplane
If a designated Indian career purchases aviation turbine fuel for purpose of its international flight, it will be deemed to be penultimate sale and hence exempt.
No VAT/CST will be imposed as it is a penultimate sale and hence considered Sale in course of Import
This exemption is only for
Indian careers (Indian airline companies)
And
Only for international flights (not domestic flights)
