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 applicability for supplies remaining in India: invoicing overseas and foreign remittance do not create an export.
Goods produced under Contract Manufacturing and moved within India but invoiced to an overseas buyer are taxable within India; invoicing to a foreign recipient and receipt in convertible foreign exchange do not convert the transaction into an export. Tax treatment depends on territorial movement: CGST+SGST apply for intra state supplies and IGST for inter state supplies. Export is defined as taking goods out of India; deemed export treatment and relief under the Foreign Trade Policy may be relevant only if subsequent export occurs and documentary and procedural conditions are satisfied.