GST on goods not entering in India

Since the goods didn't enter India, this transaction is considered an export.

As per GST laws, exports are zero-rated supplies, meaning no GST is payable. 

However, you may need to provide documentation to prove the goods were directly dispatched to Germany and didn't enter India.

This could include: - Commercial invoices - Bill of lading or airway bills - Customs documents For accounting purposes, you can record the transaction as: -

 Sales (export) - XXX (value of goods) - Receivables (XXX) In your GST return (GSTR-3B), report this transaction as: -

Exports (zero-rated supplies) - XXX (value of goods) Additionally, you may need to file an export declaration (Table 6A of GSTR-1) and provide details of the export 

As per Clause 7 of Sehedule III of CGST Act such transaction has been classified as "Neither a supply of goods nor a supply of services". Hence there is no any GST liability. And has to show the transaction as Non-GST transaction in the books of accounts and also in return.