Branch Transfer to Outside India

[Nandini Annamaneni]

Sending consumable material to one of the branch office outside India. Please advise me about GST applicability.

[KASTURI SETHI]

Elaborate your query. It is not a complete query.

[Nandini Annamaneni]

HI Sir,

We having office branch outside India. we are sending Employee ID cards from India to Outside India branch location. should I pay IGST on this transaction. Can i get Customs Duty Exemption for this.

Thanks

Nandini

[Praveen Nair]

Dear Nandini

Your question lacks clarity;

- Whether the ID cards are exported to the branch office outside India and are you going to realize amount for such supply?

- Whether proper export procedure is being followed, like filing of Shipping bill, Tax Invoice etc...?

- Which Customs duty exemptions are you talking about?

Supplies are zero rated (export without payment of duty under Undertaking) only if the goods or services or both are Exported.

[Kishan Barai]

If cards are bellow 20KG, it is advisable to send via Courier company, when goods are sent via courier they will follow all formalities like shipping bill & all.

[YAGAY and SUN]

In our view you may get exempted under Chapter 49 of the customs under printed material section. Since it is your branch office and no separate legal entity therefore in our view IGST would be applicable.

AI Summary

Export of goods: determine IGST applicability when sending employee ID cards to overseas branch and comply with export procedures.
Whether transfer of employee identity cards to a branch outside India attracts IGST depends on qualification as an export and compliance with export formalities; exports may be treated as zero-rated supplies only if shipping bills, tax invoicing and realization conditions are met. Practical steps include using courier services to ensure export formalities and considering customs exemptions for printed material under Chapter 49, while the legal relationship between entities affects GST characterisation.