Position w.e.f. 1st Feb, 2019: –
High Sea Sales should be treated as ‘NO SUPPLY’ keeping in view the amendment in Schedule-III by the CGST Amendment Act, 2018. High Sea Sales were included in Schedule-III (Activities/ Transactions which shall not be treated as Supply of Goods or Services) by this amendment. Hence rule 42 / rule 43 (reversal of ITC) shall not be applicable. High Sea Sales shall not appear in GSTR-3B and GSTR-1. However this should be shown in GSTR-9 as ‘NO SUPPLY’ in Table 5(F).
Position prior to 1st Feb, 2019: –
High Sea Sales should be treated as NON-GST supply for the period prior to 1st Feb 2019. Non-GST supply is convered in the definition of exempted sales. Hence rule 42 / rule 43 (reversal of ITC) shall be applicable. High Sea Sales shall appear in GSTR-3B and GSTR-1 as Non-GST outward supplies. This will also be shown in GSTR-9 as ‘Non-GST’ supplies in Table 5(F).
A GST class namely ‘Sales High Sea’ is available. If this class is attached, Visual Catpro shall take care of both the situations mentioned above.