Bill to overseas, Ship to India from India

[Shrinivasaraghavan P V]

The situation is as follow

We produce machine in India and is under Contract Manufacturing Agreement with our Principal. We will now have to deliver a machine in India and bill to principal who is overseas. We will get the money from our principal.

Should we include the GST as the delivery is to India when we bill? though the buyer is our Principal.

What is the code under which the foreign currency can be cleared from the bank and what documents need to be produced to the bank?

It would be of great help if experts answer this query. Also, let me know the clause under which this situation is described.

Thanks.

AI Summary

Indian Company Liable for GST on Domestic Delivery Despite Foreign Buyer, Not Deemed Exports Under GST Law A company in India, under a Contract Manufacturing Agreement, is delivering a machine domestically while billing their overseas principal. They seek clarification on whether GST applies since the delivery is within India, even though the buyer is foreign. They also inquire about the appropriate code for clearing foreign currency from the bank and required documentation. An expert response indicates that under the Foreign Trade Policy 2015-2020, such transactions might be considered Deemed Exports, but under GST law, it does not qualify, thus making it liable for GST.