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Bill to Indian company Ship direct to buyer in country X from seller in country Y

Others 655 views 2 replies

Syed Abdal Hussain

owner

21 Points Posted on 15 November 2023

An export import company from India secures an order from country X @ USD 200 to supply agri products (40MT) which are procured from a supplier in Country Y @ USD 150. Can this transaction be termed as Import and Export Bill to Ship to; Bill to India Ship to Country X. Bank tells this is not import or export as goods are not supplied from/to india. How do this type of transactions take place are they legal in India. Does RBI have any direction in respect of remittances and whether GST is applicable.

Replies (2)

prasad Nilugal

GST Practitioner & Accounts

15085 Points Posted on 15 November 2023

If Goods were shipped directly from Country Y ( non taxable territory) to Country X ( another non taxable territory) without entering in to India, then such transaction is neither supply of Goods nor services as per Schedule III sub section 7 of CGST Act , therefore GST not applicable. Take others opinion as well.