TaxTMI 
TaxTMI 
A is a seller & B is a purchaser. Both are located in India. Now B places order to A for certain material. The shipment will be done from OEM in South Korea to America (as per instructions and address given by B). Now A will raise the invoice to B. I would like to know the tax implication on the above.
Would like to understand the Tax implication on the transaction
01 Apr 2020 
13 Replies 
1978 Views Asked by
Out and out transactions excluded from GST under Schedule III, removing IGST on direct shipments between non taxable territories.
The transaction-Indian seller invoicing Indian buyer for goods shipped directly from South Korea to the United States-is characterised as an "out and out" movement between non taxable territories and excluded from supply under Entry No. 7 of Schedule III to the CGST Act, 2017, so GST/IGST is not attracted; the buyer is not treated as an intermediary and a Gujarat AAR has held no IGST on such out and out transactions from Feb. 1, 2019, though earlier treatment differed for some direct foreign to foreign shipments. (AI Summary)
The transaction-Indian seller invoicing Indian buyer for goods shipped directly from South Korea to the United States-is characterised as an "out and out" movement between non taxable territories and excluded from supply under Entry No. 7 of Schedule III to the CGST Act, 2017, so GST/IGST is not attracted; the buyer is not treated as an intermediary and a Gujarat AAR has held no IGST on such out and out transactions from Feb. 1, 2019, though earlier treatment differed for some direct foreign to foreign shipments. (AI Summary)