BUYER-SELLER BOTH ARE IN INDIA. BUT THE TRANSACTION WILL BE ABROAD

This is an interesting scenario involving movement of goods between related parties within India but physically going abroad for exhibition and sale.

Here’s a suggested approach:

Situation:

• Buyer and supplier both in India.

• Goods sent from India to Australia for exhibition by supplier.

• After exhibition, buyer takes goods in Australia and delivers to end customer.

Key Points and Suggestions:

1. Export Invoice by Supplier:

   • When the supplier physically sends the goods from India to Australia (for exhibition), this is an export of goods from India.

   • Supplier should raise a proper Export Invoice to the buyer (Indian client) for the goods shipped to Australia.

   • Export Invoice should comply with export documentation and GST regulations (zero-rated supply under GST).

   • The goods physically move out of India, so export benefit applies.

2. Transfer of goods in Australia:

   • At the exhibition in Australia, goods remain with the supplier (exhibitor).

   • Once the exhibition is over, buyer takes the goods from the supplier.

   • This physical transfer in Australia is outside Indian jurisdiction, so no Indian invoice needed here.

   • Buyer will be treated as the owner after goods leave the exhibition.

3. Buyer to Customer Invoice:

   • Buyer (Indian client) supplies goods to their customer in Australia.

   • Buyer should raise an invoice to the Australian customer.

   • Since this sale happens outside India (goods already exported), it will be considered export by buyer or deemed supply outside GST scope.

   • Buyer may not need to raise export invoice from India if goods never physically moved from India to buyer but only through supplier.

4. Supplier’s Invoice to Buyer:

   • Supplier raises export invoice to buyer in India for goods sent abroad.

   • Buyer may consider this purchase as import or stock transfer depending on exact contractual terms.

   • Buyer may need to comply with customs/import regulations if they formally import goods from supplier in India.

5. GST and Customs:

   • Supplier’s export invoice should be zero-rated under GST.

   • Buyer’s subsequent sale to foreign customer also qualifies as export of services or goods (depending on transaction).

   • Buyer can claim ITC on import/customs duty if applicable.

   • Goods physically moving out of India needs customs clearance from Indian customs.

Summary:

• Supplier exports goods to Australia for exhibition → Export invoice by supplier to buyer.

• Buyer takes goods from exhibition → No Indian invoice here, sale happens abroad.

• Buyer sells goods to foreign customer → Invoice raised outside India or as export from India depending on ownership transfer.

• Compliance with customs, GST zero rating, and documentation is essential at each step.