REGARDING APPLICABILITY OF TAX LIABILITY AND REGISTRATION REQUIREMENT UNDER GST

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This discussion clarifies that if both the sale and purchase, along with payments, occur outside India (e.g., in Dubai), then no Indian GST liability arises. Such transactions do not count towards your Indian GST turnover. Even if payments are received in an Indian bank account, the principle remains the same if the supply itself is entirely outside India.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

03 September 2025 If the Sale and Purchase both are outside india (i.e. Dubai) and Payments have also been received in dubai and not tax have been paid outside india
Then whether any such tax liablity shall be made in india and whether such Turnover shall be taken into consideration for GST turnover in india?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 September 2025 If the supply and payment are both in Dubai, GST will not apply in India. These foreign transactions also do not need to be included in Indian GST turnover since they are not taxable supplies in India.
For GST registration and turnover calculation purposes, aggregate turnover includes the value of all taxable supplies made by the taxpayer in India, including exempt supplies, exports, and interstate supplies under the same PAN on a pan-India basis. However, supplies executed entirely outside India (sale, purchase, payment) and where no tax is paid in India typically do not form part of the Indian GST turnover.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

03 September 2025 What if Payments have been received in indian Bank?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 September 2025 Same as above...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 September 2025 Good luck.

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