Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory

[CABIJENDERKUMAR BANSAL]

Dear All

Please help on following query regarding GST applicability:

There are 5 parties involved in a transaction of sale purchase of goods as under:
A in Delhi.
B in Delhi.
C in Chennai.
D in Singapore.
E in South Africa.
C orders B for goods with delivery instruction directly to E, B orders A for same goods with delivery instruction directly to E.
A orders D for same goods.
A told D to send these goods directly to E in south Africa.
So ultimately goods only move from Singapore to South Africa without entering India. What will be GST applicability in this transaction or any step of the transaction ?

GST APPLICABILITY ON :-

1. SALE - B TO C ?

2. SALE - A TO B ?

3. SALE - C TO E?

[KASTURI SETHI]

Hypothetical query. No tax on goods. Intermediary services involved. GST applicable on intermediary services.

[CA Seshukumar]

Dear all

In said scenario, since goods neither comes to India nor leaves India this will be out of import or export.

1.B to C will be IGST basis sec.10 of IGST act.

2.A to B will be CGST & SGST basis same.

3.C to E here E is out side and C is in India and hence sec.13 of IGST applies and also will be qualified as intermediary services.

PoS will be location of supplier and hence C will charge CGST & SGST .

4. D to A the act does not apply to D. And also since goods has not come to India the same can't be treated as import and hence no need to pay tax on this.

If D to A is treated as intermediary service then also the place of supply will be location of supplier i.e Singapore and hence no jurisdiction to tax.

AI Summary

Intermediary services may attract GST even where goods move entirely outside the taxable territory, affecting tax treatment of contract legs. Advisory considers a chain where Indian parties order goods that move only between foreign locations. One response treats the goods movement as not taxable and limits GST to services characterized as intermediary services. Another applies GST rules to specific contractual legs: B-C on IGST, A-B on CGST and SGST, C-E invoking place of supply rules and intermediary treatment with supplier's location determining tax, and D-A held outside the Act or taxable only if treated as an intermediary with place of supply abroad.