export of goods

[SHARAD ANADA]

1) Mr. A of India Export Goods of USD 10,000/- Without payment of tax to Mr. X of Africa.

2) When Goods reached Africa Mr. X refused to take delivery of the goods.

3) Mr. A of India Issued Credit Note to Mr. X of Africa with condition that Mr. X will born all the cost of freight, port charges at Africa etc. for USD 3000. For this $3000 Mr. A of India will raise Invoice on Mr.s X of Africa.

4)Now Mr. A of India Contacted Mr. P in Africa for selling his goods at Africa port. Mr.

5) P agrees to purchase goods at condition that all the expenses including custom duty of Africa will be born by Mr. A of India.

What will be GST implication in such transaction.

AI Summary

Indian Exporter Issues Credit Note for Returned Goods; GST Not Applicable on Freight, Port Charges, or Customs Duty. Mr. A from India exported goods worth USD 10,000 to Mr. X in Africa without paying GST. Mr. X refused the delivery, prompting Mr. A to issue a credit note, requiring Mr. X to cover freight and port charges of USD 3,000, for which Mr. A would invoice Mr. X. Subsequently, Mr. A contacted Mr. P in Africa to sell the goods, with Mr. P agreeing to purchase them if Mr. A covered all expenses, including African customs duty. The response clarified that the goods are zero-rated exports and GST is not applicable to the USD 3,000 or the customs duty.