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

Indian Company Queries GST on Merchant Trading: No GST on Direct Overseas Exports, Must Report in GSTR1. Invoicing Guidance Sought. A company involved in merchant trading, based in India, queries about the Goods and Services Tax (GST) implications on income from buying goods from one overseas country and exporting them directly to another. Responses clarify that such transactions, conducted through switching Bills of Lading (B/L), do not attract GST as they are not considered imports. However, export details must be reported in GSTR1. Further inquiries seek guidance on invoicing and reporting requirements in GST returns for these transactions, with discussions on whether the company issues invoices or earns commissions from suppliers directly billing importers.