GST on Import

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This discussion clarifies the Goods and Services Tax (GST) implications when importing goods into India and conducting a high sea sale. It explains that duty is payable on the full sale value, not just the initial import cost. The process for billing, payment to foreign suppliers, and bank acceptance of documentation for foreign exchange transactions is also addressed.

Nimesh joshi

Nimesh joshi (Querist)

17 June 2020 Sir, we are agents for a german company.
Following is the situation :
1. We shall import an item and do high sea sale to one of our buyer in INDIA.
2. We are billed by our supplier say at Euro 100.00 My Salling price is say Rs. X+GST equivalent to Euro 105.00
3. Now our buyer will pay duty on Euro 100.00, is it Ok. Will Customs every ask for duty on Euro 105.00
4. As the bill of entry will be in the name of our buyer, will bank accept the same while we have to make payment to our supplier in foreign ex-change.
5. If we ask our supplier to bill us say @ Euro 105, than how would we get difference of Euro 5. Will it attract GST or any other tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 June 2020 2 No, GST applicable on high seas sale.
3 Duty payable on 105.
4 Bank will accept payment.
5 Ask your supplier to bill only 100.
5 will be your profit paid by Indian supplier.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 June 2020 Show import order and foreign invoice bankers will make payment.

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