Inter Unit Transfer of Goods under GST (EOU to EOU)

[Nash Industries I Pvt Ltd]

An EOU can pay in Foreign Currency to another EOU on the procurement. IN other words EOU can bill in FC to another EOU (pre GST).

Under the GST, EOU is treated at par with DTA. In that case can an EOU bill to another EOU in FC or in other words the settlement of the invoice by one EOU to another in FC.

Expert views solicited.

Regards

S.Ramaswamy

[RAMESH PRAJAPATI]

EOU scheme still exists in the Foreign Trade Policy and all entitlements are continued except few. Major changes are that EOUs are not customs bonded warehouse now and GST exemption is not there. But BCD exemption is given for interunit transfer from one EOU to another. Only GST is payable. So billing pattern will continue as pre-GST.

[Nash Industries I Pvt Ltd]

thank you.

Regards

S.Ramaswamy

AI Summary

Inter unit billing in foreign currency: EOUs may continue pre GST payment patterns, but GST applies and customs status changed. EOU scheme continues under the Foreign Trade Policy with most entitlements maintained; EOUs are no longer customs bonded warehouses and prior GST exemptions have been removed. For inter unit transfers between EOUs Basic Customs Duty exemption continues, but GST is payable. Consequently, pre GST billing practices, including invoicing or settlement in foreign currency between EOUs, may continue albeit subject to the new GST liability and changed customs status.