26 June 2018
1. Nepal Govt had floated a tender for mobile forensic van. XYZ had bidden for it and was qualified for it.
2. XYZ ordered to ABC to provide van for fabrication.
3. ABC have approached PQR Ltd. for External and internal fabrication for mobile forensic vans as per their specifications.
4.In turn, PQR will get the fabrication work done from other party in Pune. Then the van will be sent to Nepal.
5.Again Forensic kit (to be fitted in the van) will be purchased from Delhi and will be dispatched to Nepal. This kit will be fitted /installed at Nepal by the Vendor of the kit(from India). Transportation of kit from Delhi to Nepal will be done by XYZ and PQR will raise bill for kit and its installation to XYZ.
The local parties, from whom fabrication work is done and kit is purchased / installation is done, will charge GST on their respective bills to PQR
Is IGST is applicable in this case since Nepal does not have GST regime.
26 June 2018
IGST applicable in this case being export. By furnishing LUT no GST payable on export. Refund on ITC can be claimed on GST paid to PQR. PQR can claim ITC.
CAclubindia
