Goods supplied to indian customer procured from overseas

[Yatin Bhopi]

Dear expert

Below is the scenario, please let me know taxability under the GST

We wish to supply goods to our Indian customer. We are raising purchase order to overseas manufacture, and goods will be shipped to India directly to our customer in India. All customs clearance will be done by our customer ( port of import,Gujarat). We (situated in Maharashtra) will raise the invoice to Indian customer (Gujarat).

Please let me know.

Whether we need to raise GST tax invoice, if yes

What will be the tax i.e. Whether this is an interstate or intra-state transaction?

[Rajagopalan Ranganathan]

Sir,

Please clarify on whom the foreign supplier will raise the invoice for the supply of goods either to you or to your customer?

If the foreign supplier raises the invoice against your customer then he will clear the goods from the port of import on payment of applicable taxes. In this case you cannot raise another invoice on your customer for supply of same goods.

According to your query the above situation is true since your customer is undertaking customs clearance etc.

If the foreign supplier raises invoice against you then customs formalities are to be met by you and not by your customer. After import of goods if you sell the goods to a customer who is located in the same state in which you are located then you have to pay CGST and SGST. If the customer is located in another state then you have to pay IGST since the sale is inter-state.

[Yatin Bhopi]

thanks for replay

Sir, foreign supplier will raise invoice on us

[DR.MARIAPPAN GOVINDARAJAN]

Shri Renganathan gave a detailed procedure if your foreign supplier raises invoice on you.

[Rajagopalan Ranganathan]

Sir,

If the foreign supplier issues invoice in your name then for the purpose of Customs Act, 1962 you are the importer. Therefore you have file the bill of entry. However you have said all customs clearance will be done by our customer (port of import,Gujarat). This is not possible. after importing the goods you can sell the goods to your customer after payment of applicable taxes. In my view a third party cannot file bill of entry when the invoice is in the name of a different party.

[Yatin Bhopi]

Thanks Sir

I think high seas sale arrangement is required if clearance is to be done by the customer

so in that case we will issue bill of supply to the customer and taxes will be paid by customer through bill of entry

AI Summary

Import liability and GST: importer files bill of entry, domestic sale attracts CGST and SGST or IGST. If the foreign supplier invoices the Indian customer, that customer is the importer and must pay import duties and GST at clearance; the intermediary cannot invoice the same goods. If the supplier is invoiced in the intermediary's name, that intermediary is the importer, must file the bill of entry, and on domestic resale must charge CGST and SGST for same-state buyers or IGST for inter-state buyers. A third party cannot file the bill of entry if the invoice names another importer. A high seas sale can be used to allow the customer to clear imports while the supplier issues a bill of supply.