When material is delivered within a state at the direction of a third party located outside India, and billing is done only to the party located outside India, what would be the place of supply (POS)? Should IGST or CGST/SGST be charged?
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Applicability of IGST or CGST/SGST
Replies (2)
As per GST rules in India, when goods are delivered within India to a third party on the direction of a supplier located outside India( and billed to the overseas party), it may be treated as an export if certain conditions are met. In such cases, IGST would be applicable, and the supplier in India might be eligible for a refund of the IGST paid if the transaction meets export conditions.
Supplier would not be eligible for refund as it can't be treated as export because as per the defintion of export of goods- Export means taking goods out of India to a place outside India. Becuase in the case in Hand, material is not moving out of Indai, it doesn't satisfty the condtion of export of Goods.
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