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GST-Export

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Ravichandran

Admin

29 Points Posted on 16 March 2023

We have an inquiry for component supply from a Dubai based client. But the material should deliver to Corba, Madyapradesh. The client's work order based US$ and payment, LC also in US$. Is it comes under export or GST taxable? If taxable how can we claim the ITC? Please Guide us.

Thanks & Regards

D.Ravichandran

Admin

Ficus Consulting India Pvt Ltd

Coimbatore - 25

Replies (2)

Quick Summary

This discussion clarifies whether supplying components to a Dubai-based client, with delivery in Madhya Pradesh, India, constitutes an export under GST. The consensus is that since the goods remain within India, it is not an export but a 'bill to ship to' transaction, making IGST applicable. The supplier can claim Input Tax Credit (ITC) on their purchases.

prasad Nilugal

GST Practitioner & Accounts

8996 Points Posted on 16 March 2023

This is not the Case of export, because as per section 2(5) of the IGST Ac t, export means taking goods out side India, however your goods will be delivered to Madhya Pradesh in India from Coimbatore , So this the Case of bill to ship to as per section 10(1)(b) of the IGST Act.
Therefore you have to charge IGST to Dubai Client .

Take others opinion as well.

sujith kumar dasa

banglore

988 Points Posted on 17 March 2023

This transaction doesn't qualify for export of goods as goods are not moving out of India. Hence GST is applicable on the sales.

You are allowed to take credit for your purchases.