Bill to overseas - ship to India from India

[Shrinivasaraghavan P V]

Dear Sir,

I have the following issue. We produce goods in India and are under Contract Manufacturing Agreement. The buyer/owner is overseas. We have a situation where we have to send the goods to other state in India (Manufacturing Base is in India) and Bill to overseas buyer. Is there a procedure for this. How the foreign currency for the bill be realized. What are the tax implications and how it need to documented. Request expert support on this.

AI Summary

IGST applies to domestic shipping for overseas buyers under Contract Manufacturing; not export per IGST Act, 2017. A user inquired about the tax implications and procedures for billing an overseas buyer while shipping goods within India under a Contract Manufacturing Agreement. Experts responded, highlighting that Integrated Goods and Services Tax (IGST) applies since the goods remain within India. They clarified that invoicing an overseas customer doesn't qualify as an export under the IGST Act, 2017. Additional discussions addressed whether the transaction could be considered a deemed export if the goods are later exported by another party. It was noted that deemed export is defined in the Foreign Trade Policy 2015-2020, potentially allowing GST savings.