Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

Query regarding gst

14 November 2020

my company name is save life we trading in all medicines and medical equipments.and i want to business with overseas country.so now we dealing with China in direct import fetal doppler equipment in bulk order and export to saudi Arabia directly. in it there is direct trading between 1 to another.so i want to know how much gst liable to pay and how much custom duty should pay on import and export. please sir kindly ans my question.

Reply
Follow
Share

5 Replies

Shivam RC (Student) (23683 Points)
Replied 14 November 2020

The goods are being directly exported to Saudi Arabia from China or is being first imported to India from China and then exported from India to Saudi Arabia ???

Upgrade to CAclubindia Pro. Subscribe Now!

Shunaiza Shaikh (28 Points)
Replied 14 November 2020

No sir directly purchase from China and deliver to saudi Arabia for selling. in dis trading gst + custom duty liable?

Shivam RC (Student) (23683 Points)
Replied 14 November 2020

This is called Merchant Trading ( or Third Country Exports ).

As per Para 7 of SCHEDULE III of the CGST Act 2017, W.e.f. 01/02/2019, Merchant Trading is not treated as a SUPPLY of Goods or SUPPLY of Services. Hence no GST is levied on Merchant Trading. You are not required to pay any GST provided the goods do not reach the Domestic Tariff Area of India.

I'm not sure about the Customs Duty. Kindly confirm that from other members of the forum...

Regards.

1 Like

Ranga raj (still studying) (122 Points)
Replied 14 November 2020

Shivam sir today i have learnt a new concept from you... with regard to merchant trading, Thank you sir. W.r.t to the original question of customs duty it is not applicable as same as gst and even if you import and re export you can claim duty drawback.