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

Place of supply: cross-border movements not entering domestic territory fall outside GST jurisdiction but may trigger foreign exchange rules.
When an Indian intermediary directs a foreign supplier to deliver goods from one foreign country to a buyer in another foreign country and the goods do not enter India, the transaction is neither export nor import under statutory definitions, falls within the Schedule III exclusion for movements between non-taxable territories without entering India, and is outside GST jurisdiction; FEMA provisions may still apply.