BILL FROM OVERSEAS SHIP FROM INDIA

[CABIJENDERKUMAR BANSAL]

Hello

An Indian vendor sells goods in Bill to ship to model as follows:

Order received from Singapore company to ship goods to a delhi based company.

vendor sends goods to Delhi based company and bill to singapore company.

Singapore company makes payment of the bill to Vendor.

Now, Singapore company bill to Delhi based company adding a little margin but without GST and Delhi company pays to singapore company based on this invoice.

Is this valid transaction as per GST law , if yes, is there any liability for Delhi company to pay GST under RCM basis.

Regards

AI Summary

Delhi Company Faces GST on Local Sale, Reverse Charge Mechanism Applies for Vendor's Transaction with Singapore Firm. An Indian vendor received an order from a Singapore company to ship goods to a Delhi-based company. The vendor billed the Singapore company, which then billed the Delhi company with a margin but without GST. The query was whether this transaction is valid under GST law and if the Delhi company has any GST liability under the Reverse Charge Mechanism (RCM). Responses indicated that since the goods were delivered within India, it is considered a local sale with applicable GST. Payment can be received in foreign exchange or INR through a Vostro Account, as per Foreign Exchange Management Regulations.