We had received Purchase order from company based in USA to deliver material in India to its client. We will receive payment in USD as per PO terms. PO inclusive of all taxes applicable in India.
My Quastion is
Thanks
As per the definition of export of goods , given in section 2(5) of the IGST Act 2017 (please refer) , registerd person has to take goods outside India to the place out side India, in your case goods are not delivered outside India, therefore this is not a case of export of goods , this is the case of Bill to Ship to 10(1) b of the IGST act ,therefore you have to charge IGST to your claint , as you are billing to USA Claint and shiping in India .
You may requried to take FIRC ( Foreign Inward remitance certificate ) form BANk , however this certificate is required in case export of Goods or services .
Take more opinion on this from others also.
I have corrected my earlier reply above please refer , you have to charge IGST and not CGST/SGST .
Means 1st buyer is out of state so it will attract IGST instead of CGST/SGST, though material movement is within same state.
Yes , You are biilling to US Client therefore IGST , and shiping in india . ( Bill to ship to case )
not export case . also take more Opnion on this .
One thing is clear... it will be not be cconsidered as an Export of Supplies.
I am assuming that the goods that you wish to supply in India is a DTA market. If it were in a SEZ, then you would need to obtain the relevant Bill of Export and submit it to the bank in order to set off the EDPMS obligation.
For supplies in DTA, there is no such document that would consider valid. Hence, inform your bank in advance and check with the prospects of settling the transaction. When the payment is effected by the U.S. based Company, MT103 (SWIFT) must show the "Purpose Code" which is other than exports and in close relevance of the supplies made in India.
CAclubindia
