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Forign Trade

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sona1

MANAGER

281 Points Posted on 17 January 2023

We received a orders from outside India but goods shall be delivered within India and payment will be receivable through Foreign exchange

Our Question is :-

whether transaction shall be treated as export or domestic transaction ?
GST applicable in the above case?
If GST applicable then we will make 02(two) Invoice i.e Commercial Invoice & Indian Invoice ??

Replies (4)

Quick Summary

This discussion clarifies GST implications for foreign trade orders where goods are delivered within India, even if payment is received in foreign exchange. The consensus is that such transactions are considered domestic, not exports, as goods do not leave India. GST is applicable, and only one invoice, an Indian invoice, is required. While the invoice must be in Indian Rupees, you can note the equivalent USD amount for accounting purposes.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 17 January 2023

1. Cannot be Export , as goods never delivered beyond custom Frontier. as per Definition of export of goods u/s 2(5) IGST act , taking goods out of India. So it deemed to be domestic transactions.
2. Yes its an supply under Section 7, hence GST attracts.
3. you need to issue only one invoice as per the provsion of section 31 of CGST Act

sona1

MANAGER

281 Points Posted on 18 January 2023

One Invoice means Indian Invoice , if we create Invoice in Indian Rupees then Outside India party how to show this in account because we received from party USD.