High Sea Sales under GST 🌊⚓ A concept in international trade that every importer/exporter should know. Here’s a simple guide explained slide by slide 🧵👇 [img:yvV-cAC7X]

A High Sea Sale (HSS) is when goods are sold while still on the high seas, before they arrive at an Indian port and before customs clearance. [img:43cf8NFUo]

The key feature of HSS is that ownership of goods is transferred before they cross Indian customs frontiers. [img:L_LArszwY]

In practice, the original importer sells goods to a new buyer by endorsing the Bill of Lading. The new buyer then becomes the importer for customs purposes. [img:iQd4KEr2c]

The final buyer, who files the Bill of Entry, is treated as the actual importer and is responsible for duties and taxes. [img:rt2WxIooH]

High Sea Sales are recognized under Customs law and clarified under GST to avoid confusion on taxability. [img:YxNZje0KH]

Under GST, HSS is considered outside the scope of supply. This means the sale itself is not subject to GST. [img:ZA_I-CPrH]

Tax is levied only when goods are finally cleared for home consumption. That’s when Customs Duty + IGST are collected from the final buyer. [img:8gM4gl43m]

Without this rule, multiple sales in transit could attract tax at every stage. HSS ensures only the final buyer pays GST + duty ✅ [img:qPNzbVIZo]

Key documents in HSS include: High Sea Sale Agreement Endorsed Bill of Lading Invoice from seller to buyer Bill of Entry filed by final buyer [img:wp3BhvZiG]

It’s important that the HSS agreement and endorsement of the Bill of Lading are done before goods enter Indian territorial waters. [img:XlerCOHrw]

High Sea Sales are typically used by: Importers who sell goods mid-transit Traders who don’t want goods entering their stock Businesses optimizing costs and logistics [img:rU3vL_9FI]

Example: Importer A orders goods from China. While goods are at sea, A sells them to B via a High Sea Sale. B files Bill of Entry → B pays Customs duty + IGST. [img:j2rTC-1gh]

Benefits of HSS include: Avoidance of double taxation Flexibility in trade Lower costs Efficient inventory management [img:zGNwYVCus]

The CBIC has clarified that IGST on HSS is collected only once—at the time of import clearance by the final buyer. [img:qgO4TsJNv]

Some believed that every HSS transaction would attract GST. That’s not true—the sale is outside GST. Only the final clearance attracts IGST. [img:Ai_xZeYOn]

High Sea Sales are a legitimate and GST-compliant way to transfer goods before they arrive in India. For global traders, it’s an essential tool to stay flexible, compliant, and cost-effective. 🌍 [img:VsAGsRfw8]