Under GST, The merchant exporter has to mentioned details of suppliers such as Tax invoice number,GSTN No. in their shipping bill. In routine the exporter has pass shipping bill in advance (Before procure material from supply) now
exporter insists invoice from supplier before removal of material from suppliers premises . (In short the material may be despatched from supplier after two to three days after prepare the tax invoice)
Is it allow under GST Act. and what type of precaution to be taken under this type of transaction.
Merchant Exporters: Issue GST Invoice at or Before Goods Removal; Claim Refund with IGST or LUT/Bond. A merchant exporter inquired about the GST requirements for issuing tax invoices before the removal of goods from a supplier's premises. Two responses were provided. The first response stated that an invoice cannot be issued before the supply of materials. The second response clarified that the supplier should issue an invoice either before or at the time of removal of goods, and the merchant exporter can then issue their GST invoice for export, either with IGST payment or under an LUT/Bond without IGST, claiming a refund in both scenarios. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
