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

Domestic supply GST applies when goods are shipped within India; foreign payment receipt permitted under FEMA and RBI rules.
Sale of goods physically delivered within India but billed to an overseas buyer is treated as a domestic supply and GST is chargeable as on any local sale. Vendors may receive payment in free foreign exchange or via an overseas bank's vostro account in India under FEMA and RBI rules, though banks and the Indian consignee may face documentary or remittance constraints; the issue of reverse charge liability is raised but not resolved in the replies.