MERCHANT TRADING

[tanmay hada]

dear sir, we are company based in merchant trading and importing, but our point of querry is ONLY MERCHANT TRADING . We buy from an overseas country and export directly to third country sitting here in India.

can you please advice the implication of gst on income generated from such trade.

thanks

tanmay

[Kishan Barai]

One can do such kind of transaction by switching B/L, no GST would be applicable on such transaction as a bill of entry would not be filed

[saraswathi P]

Dear Sir,

I have same query for the above issues, whether we need to file returns in GSTR 1 for Merchant Trading and importing.

Saraswathi

[Kishan Barai]

When you do switch B/L Transactions then it would not be considered as Import, so no Import return has to be filled but Details of Export has to be shown in GSTR1 because you will create premium bill & provide it to your client with B/L (switched) along with other documents required by the Importer.

[saraswathi P]

Can I have your contact# for discuss about merchant Trading as per GST, we required some suggestion particulars transaction wise

[VenkatRao Biradar]

Dear Sir

In GST merchandile trade transaction export what is the section or notification number we have show in invoice and in GSTR1 and GSTR 2 (I.E PURCHASE ) how to show which coloum we have to show please advise us sir

Regards

Venkat Rao Biradar

Mob:9704375426

[VenkatRao Biradar]

Dear Sir

Not got clearity on merchant trade transaction sir request please revert Sir

[Kishan Barai]

I would like you to few questions

1. Do you provide bill to your Importer on above transaction ?? (Bill under your company name)

Or

2. Bill is provided by your Supplier directly to importer & you earn commission from it ??

AI Summary

GST treatment of merchant trading: switching bill of lading can avoid import GST but export must be reported.
Switching bill of lading in merchant trading, where overseas goods are exported directly to a third country without filing a bill of entry, typically avoids import GST; no import return is required. Export particulars arising from such transactions must be shown in GSTR-1. Invoice and return treatment depend on whether the Indian merchant invoices the importer or only receives a commission while the supplier invoices directly; supporting switched B/L documentation and correct disclosure in GSTR-1 are essential.