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 andSUN]

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

Transaction Involving Foreign Currency Supply Order Clarified: IGST vs. SGST and CGST Due to Intrastate Nature A query was raised regarding a transaction involving Mr. X in Hyderabad, who received a supply order from Mr. Y in Dubai to deliver goods to Mr. Z in Hyderabad. Despite receiving foreign currency from Mr. Y, the transaction is not considered an export since the goods did not leave India. It was clarified that IGST should be charged. Another opinion suggested that since the goods did not cross customs frontiers, the transaction is intrastate, attracting SGST and CGST instead.