BILL TO SHIP TO OVERSEAS

[Anurag Jain]

Sir,

One of my client started business in which he receives purchase order of goods from one country (X) and then he makes purchase order of same goods to another country (Y) and goods will be shipped from country Y to country X directly. Country Y dealer makes bill on my client for purchase and my client drawn bill on country X dealer for sale, what is the impact of GST on this transaction as it is overseas transaction?

AI Summary

GST Not Applicable on Goods Shipped Directly Between Foreign Countries Without Entering India; FEMA Provisions May Apply A client conducts a business where goods are ordered from one country and shipped directly from another country to the first, without entering India. The question raised concerns the applicability of GST on such transactions. According to responses, since the goods do not enter India, they neither qualify as imports nor exports under the IGST Act. Thus, GST is not applicable. However, FEMA provisions may apply to these transactions. This scenario involves goods moving between non-taxable territories, exempting them from GST under Indian jurisdiction.