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EXPORT OR NOT

Samrat Karar (76 Points)

26 September 2020  
My one friend supply some box to a local registered party on instruction from foreign customer and bill raise to foreign customer and payment receive. Foreign customer purchase the product but said us to supply a local party. How it will be treat in GST. please give some suggestion.

 12 Replies

Sumit Chakraborty (23 Points)
Replied 26 September 2020

It will not be treated as export as for claiming export goods have to be physically delivered outside India.

Samrat Karar (76 Points)
Replied 26 September 2020

Then GST should be charged or not in invoice to foreign customer.

prasad Nilugal (Sr . Accountant and GST Practitioner . )   (6976 Points)
Replied 26 September 2020

Is the party to whom , you have sent goods on the direction foreign customer is register under GST ?. 

Samrat Karar (76 Points)
Replied 26 September 2020

No, foreign customer is not registered under gst. We supply to any other registered party in our state who will later supply our box with their wallet to outside India to foreign customer. We will issue invoice for our box only and other party issue their invoice for their wallet only. other party link with direct export. But we are not link with direct export but indirectly our goods is going to outside India by someone on instruction on foreign customer.....I am unable to solve the problem..please help...should I charge GST to foreign customer because we have to bill them or it is an export. We can use LUT for export...please help

prasad Nilugal (Sr . Accountant and GST Practitioner . )   (6976 Points)
Replied 26 September 2020

No I am taking about  foreign  customer  , he will be  never  a  registered  person  .  I am  taking about the person  to whom you have sent goods in  India  is registered under GST or not ?. This is not  export case for you because for export Goods  to be  delivered  out side India  physically   . 

Samrat Karar (76 Points)
Replied 26 September 2020

Yes to whom we supply is registered. But we have just supply them but we have to issue invoice to foreign customer.

Rajat Soni (Service) (247 Points)
Replied 26 September 2020

GST is applicable on destination based supply. As your place of supply is within India you need to charge GST in Invoice. In Invoice you need to show shipping address and charge GST.

Samrat Karar (76 Points)
Replied 26 September 2020

Can I get refund it because it is originally export but by someone.

Rajat Soni (Service) (247 Points)
Replied 26 September 2020

No you can't

Samrat Karar (76 Points)
Replied 26 September 2020

Ok..Thanks for ur valuable suggestions

Rajat Soni (Service) (247 Points)
Replied 26 September 2020

Thanks

CS M Pota (Company Secreatary) (3095 Points)
Replied 28 September 2020

Samrat , in your case your the transaction should have done like as under:

1) Your Foreign buyer  should instruct to the Indian to whom you have supplied that the Box be purchased from you and thereafter the Box should be exported.

2) The Indian party to whom you have supplied Box should  buy the box from you as Merchant Exporter.

3) You should supply the Box charging 1% GST .

4) The Merchant exporter should show your ( your friend's ) name as Manufacturer if he is  .


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