Accounting Entry For Export

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This discussion focuses on the correct accounting entry for exporting plastic recycling machine blades as samples, not for sale. The user is seeking guidance on how to record this transaction, including its treatment in GST, and whether it can be shown as a business promotion expense. Advice suggests passing a sales entry followed by a consumption entry, or potentially using a debit note for FOC items, with specific GST implications like IGST payable or LUT to be considered.

Dikshit Shah

Dikshit Shah (Querist)

01 June 2021 Dear Sir/Madam,

Good Afternoon!

Please Share Accounting Entry For Below Transaction.

We Have Export Plastic Recycling Machine Blades As Sample (Not Sale). Now We Have Send Material By Air And We Have Issue Invoice With Regular Sales Invoice number Invoice Value Is 250USD And INR 18,263.00.

So my Question Is How Can I Am Pass This Sales Entry (Because Its A Sample Material) And Also Can I Show This Transaction In GST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 June 2021 Show it as business promotion expenses.
Yes, show it as export in GST. IGST payable/ LUT to be furnished.

Dikshit Shah

Dikshit Shah (Querist)

01 June 2021 Hello sir

Thank you for your reply

As you says I am showing in export but than my sales increase so it's good for business

CA Ganesh Agarwala

CA Ganesh Agarwala (Expert)

02 June 2021 You can pass a sale entry and and accordingly a consumption entry. Assuming this is FOC , you can raise a debit note and reverse the sale and the debtor.
I am not sure about it’s adjustment in GST. I am accounting expert

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