Hi, If we sale goods directly from china to USA, without importing goods in india , will we require to pay gst on such case?
Menu
GST on International dropshipping
Replies (11)
Quick Summary
Https://taxadda.com/gst-on-dropshipping-business/#:~:text=GST%20on%20Dropshipping%20business%20when%20goods%20are%20purchase%20from%20outside,SGST%20or%20IGST%20as%20applicable.
No need to pay gst
GST will be applicable.
GST is not applicable in this case by any imagination whatsoever.
How GST will be applicable can you elaborate Rashmi madam?
As you have made supply of goods to USA , gst will be applicable. However you can claim refund later on.
If you have LUT, the you can sale goods without GST.
If you have LUT, the you can sale goods without GST.
The supply will be classified under high sea sales and not taxable. Both the legs of the concerned transaction are neither falling under the definition of import or export
Agreed with CA Altamush Zafar after reading all laws what I sum up is
In international dropshipping cases, GST will not be levied. According to para 7 of the Schedule III of the CGST Act[1], any supply/transaction that takes place in the non-taxable location with no connection to the home country shall not be treated under the GST regime. If the merchant belongs to India and completes the entire business transaction outside the nation then in such case the GST will not be applied.
In international dropshipping cases, GST will not be levied. According to para 7 of the Schedule III of the CGST Act[1], any supply/transaction that takes place in the non-taxable location with no connection to the home country shall not be treated under the GST regime. If the merchant belongs to India and completes the entire business transaction outside the nation then in such case the GST will not be applied.
CA Rashmi Gandhi
CA Altamush Zafar
Thanks for valuable insights.
Welcome 🤗🤗
I have a related question, In order to conduct international dropshipping busibess there are many expenses are incurred in India from where entrepreneur is operatiing expenses like Google Ads, Facebook Ads, PayPal fees, Shopify fees & many more such expenses on all these expenses GST is levied by these vendors - Can entrepreneur claim refund of this GST levied to him ?
Recent Topics :
- Tired converting GSTR-1, 2B & 3B to Clean Exce
- TDS on under construction property not deducted
- GST on Fixed Assets
- GST ITC april 22
- GST PAYMENT REGARDING
- GST Consultation Required – June–Augus
- TDS Code for Salary Payment to Non-Resident Intern
- TDS on property
- Company data for software
- Car purchase to be eligible for ITC
Related Topics :
CAclubindia
