EXPORT or NOT

[Bharat Cholleti]

Dear sir,

Mr.X is registered in Hyderabad and got supply order from Mr.Y who is in Dubai(Registered person) As per the terms and conditions Mr. X has to supply the goods to Mr.Z who is registered in India( i.e, Hyderabad), whether it is treated as Export sale or not? Mr. X has received Foreign Currency from Mr.Y. (Dubai Registered person). Pl clarify my doubt sir.

[KASTURI SETHI]

Goods have not left India. It is not export.

[Bharat Cholleti]

Thanks you sir, then what is these transaction shall we charge IGST.

[KASTURI SETHI]

IGST is to be charged.

[YAGAY and SUN]

In this matter since goods had not left the Customs Frontiers, therefore it transaction won't come under the purview of Exports. In our view it is intrastate transaction and SGST + CGST will be attracted.

AI Summary

Export sale: goods delivered within domestic territory are not exports, raising SGST and CGST rather than export treatment.
Whether a supply arranged by a foreign registered buyer but physically delivered to a domestic registered consignee constitutes export hinges on whether the goods left Indian customs frontiers; where goods remain in India the transaction does not qualify as export and export benefits tied to physical export are not available, producing divergent advice on whether IGST or SGST plus CGST applies depending on characterization of place of supply and movement of goods.