EXPORT SALES

[ROHIT GOEL]

one of our client is doing export of scientific goods and falls under EOU category. He has issued export sales bill on 28.03.2019 for export and duly reflected in GST returns. However material has been dispatched from factory on 05.04.2019 therefore e-way bill has also been issued on 05.04.2019..

As per As-9 for recognition of income, can income be recognised for such bill in march 2019 as actually material was lying within the factory itself.

[KASTURI SETHI]

Such income will be accounted for the year 2019-20.

AI Summary

Revenue recognition: export sale income recognised when goods dispatched and risks transferred, resulting in accounting in subsequent fiscal year.
Income from the export invoice issued in late March must be recognised when the significant risks and rewards transfer on physical dispatch; since dispatch occurred in April, the sale is to be accounted for in the subsequent accounting year (2019-20) under AS 9.