Hi,
We are in general import export business. But, we have one merchanting trade transaction where we have bought goods from china and sold to our client in US. Goods are neither imported to India nor exported from India. We have our name on BL as a notify party. Want to ask what will be its impact on GST and how will we show it in return. And while taking the value of goods how we will convert the value of goods from USD to INR because we dont have any shipping bill or bill of entry.
This is covered in schedule III to CGST/SGST Act as transaction which will neither be treated as taxable goods nor services - please find below the entry :
"7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India".
Not ITC reversal is needed for this.
Strictly speaking it need not be shown in GSTR1/3B since it is a non-supply transaction - but suggested to be shown under table 8(4) of GSTR1 and 3.1(e) of GSTR3B.
Can be converted to INR using the customs rate applicable for the relevant period (customs notification can be found on ICEGATE or CBIC website).
CCI
Pro
CAclubindia
