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Export or Not

16 January 2019

Tax Invoice goods sold
Billing address (Buyer) - 'A' located in USA
Consignee - 'B' in India

query
1. whether this will be treated as export?
2. How to treat under GST returns

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9 Replies

Vipul Acharya (Account Officer) (652 Points)
Replied 16 January 2019

As the place of supply is India, will be treated as domestic sale

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 16 January 2019

1. No it won't be Export the goods do not cross the indian custom barrier.

2. Normal B2c sale

Nilesh Dwivedi (32 Points)
Replied 16 January 2019

Then how to treat the amount received in Foreign Currency. How to close the BRC

Sanjiv Rajpoot (3430 Points)
Replied 17 January 2019

this is not an export same case disallowed by department and treat as domestic sale

2 Like

CA Arun Chhajer (GST Faculty @ Ministry of MSME Govt of India) (2813 Points)
Replied 17 January 2019

Correct it is not export as to say the export of goods the goods should physically cross custm frontier of india.

In the Return it should be shown as sale to unregistered party as Inter State,

So in GSTR 1 it will be reported under

1. Table 5 - if invoice is more then 2.5 L

2. Table 7 - if it is upto 2.5 L

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Sridevi (Accountant) (380 Points)
Replied 17 January 2019

Hi All,

I have one more query, we, (Registered in India) are importing goods from China and exporting them to Thailand. But, the goods doesnot enter Indian Customs port, instead the supplier directly sends the material to Thailand party but the Invoice will be in Indian Company name and we will be billing to Thailand party name.

So, how to treat this transaction and does it come under GST and we have opted for LUT.

Regards

Sridevi

CA Arun Chhajer (GST Faculty @ Ministry of MSME Govt of India) (2813 Points)
Replied 17 January 2019

This is neither Export (as the goods are not physically go out of india i.e. from India to Thailand) and not the import as the same is not coming to the custom frontier of india (China to India). Therefore it is not reported under Zero Rated Supply

Where we need to report

This transaction is covered under Negative List as given in Schedule III of CGST Act (Inserted 2 new point i.e 7 & 8 after GST Amendment Act 2018,which is made effective from 1 Feb'19)

So it will be No Supply.

Reporting in 3B - As outward Supply in Table 3.1.e and in GSTR 1 table 8

Hope your query is resolved.