Purchase outside the country and sale within india

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An Indian firm (A) places an order on another Indian firm (B) in INR for supply of equipment to A's project site outside India.

B Places an order on a foreign company (C) in US$ asking C to supply the equipment directly to A's project site abroad.

After delivery, B pays C in US$.

Once C delivers the material to A's project site abroad, B invoices A in INR and gets the payment.

Is this transaction valid?

Is GST applicable on this sale between B & A?

Replies (7)
Yes... B will charge GST on invoice issued to A as per Section 10(1)(b)

SORRY FOR ABOVE REPLY                                                                                                                                                 

,AS GOODS NEVER ENTERED INDIA,...HENCE AS PER SECTION  7 OF CGST ACT , READ WITH SCH-III ,"SUPPLY OF GOODS FROM PLACE NON TAXABLE TERRITORY TO ANOTHER NON TAXABLE TERRITORY IS TREATED AS NEITHER SUPPLY OF GOODS NOR SUPPLY OF SERVICE",    ...............AND AS PER SECTION 10(1)(B) OF IGST ACT , IT DECIDE THE PLACE OF SUPPLY......... HENCE THE SPECIFIC PROVISION OF SECTION 7 WILL OVERRIDE THE SECTION 10 OF IGST ACT..........................................................................................................................................................................

HENCE ITS NOT COVER UNDER SUPPLY THERE WILL BE NO GST APPLICABLE ON INVOICE FROM B TO A

---------------------------------------------------------------------------------NOTE : BETTTER TO FILE AAR & GET CLARIFICATION ON SAME

 

Dear Mr rawat Thanks for your reply. Please let me know whether such a transaction is legal and we need not have to pay GST?
Dear Mr Rawat, I would like to add to this, since the Buyer (Firm A) and Seller(Firm B) are in India the Purchase Order and Invoice will be done in India. This will just be Bill to(Indian Firm) & Ship to ( Foreign Port) Case.

DEAR AMAR AJMERA

YES YOU ARE CORRECT BOTH SUPPLIER & RECIPIENT IN INDIA , THATS WHERE THE CONFUSION IS ARISING , WHETHER SECTION 10 OF IGST WILL APPLICABLE OR NOT , BUT IF WE READ SCH-III (7) THE GOODS NEVER ENTERED TO INDIA , SO ALWAYS AN SPECIFIC PROVISION OF ACT PREVAILS, SO THERE IS NO SUPPLY & NO LEVY OF GST ATTRACTS

 

DEAR W.HEBBALE :

ITS COMPLETELY MY POINT OF VIEW , THERE WILL BE NO GST LEVY & IAM VERY MUCH SURE THERE MUST BE NO GST.

NOTE: TO CONFIRM THE SAME CAN APPLY FOR AAR .

 

***QUERY STILL OPEN FOR OTHER VIEWS

 

 

Thank you very much Mr. Rawat


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