Bill to and ship to - applicability

[Yash Jain]

Dear Esteemed Members,

One of our customers outside state, has placed order with us to supply the goods at a port (for export) within our state in which he is not registered.

He is informing us to charge igst, and now my query is.

1. Can this be treated as bill to (billing to customer outside state) and ship to (shipping to same customer within state - in which he is not registered), transaction.{shipping being done to unregistered person}

2.If answer to aforesaid is affirmative, then what documentation should we take from customer.

3.Can the customer claim refund of taxes paid on export of goods (Goods are shipped to him in state were he is not registered and billing id done in state of his registration.

Please guide

[Nash Industries I Pvt Ltd]

One of our customers outside state, has placed order with us to supply the goods at a port (for export) within our state in which he is not registered.

He is informing us to charge igst, and now my query is.

1. Can this be treated as bill to (billing to customer outside state) and ship to (shipping to same customer within state - in which he is not registered), transaction.{shipping being done to unregistered person}- YES WITH IGST

2.If answer to aforesaid is affirmative, then what documentation should we take from customer. CUSTOMER PO TO CLEARLY SPECIFY BILL TO HIM AND TO DELIVER AT THE PORT WITH IGST

3.Can the customer claim refund of taxes paid on export of goods (Goods are shipped to him in state were he is not registered and billing id done in state of his registration) - YES, CUSTOMER TO MAKE BOTH GST AND EXPORT INVOICE FROM HIS STATE AND CAN CLAIM REFUND OF THE TAXES.

Regards

S.Ramaswamy

[Yash Jain]

Sir,

Thanks for guidance. Just one more question w.r to above, that is "Will an unregistered person, be counted as a person in bill to and ship to transaction"

AI Summary

IGST applicability for bill-to outside-state sales delivered in-state to facilitate export; documentation and refund steps required. IGST applies where goods are billed to a customer registered outside the State and delivered within the seller's State at a port for export, even if the delivery is to an unregistered recipient. The seller should obtain a purchase order explicitly stating bill-to and delivery-at-port with IGST. The customer should issue both GST and export invoices from his State of registration and may claim refund of taxes paid. A remaining question asks whether an unregistered recipient at delivery qualifies as a person in bill-to/ship-to transactions.