The tools are billed to a foreign customer. the tools are retained in the factory for use in the manufacture of components for the same customer. The customer pays in FC. As per Law, CGST+SGST to be charged as there is no movement of goods. The e-invoice portal does not allow to generate IRN for such transactions.
As per the FAQ, e-invoice is applicable only to B2B (registered persons) including exports.
In this scenario, the customer is not registered being outside India.
Please let us know how to generate IRN.
If IRN is not required to be generated, then how to show it in GSTR-1.
Request the experts advise.
Generating IRN for Tools Billed to Foreign Customer Retained in India: Experts Suggest Symbolic Ownership Transfer, Use URP. A forum participant inquired about generating an Invoice Reference Number (IRN) for tools billed to a foreign customer but retained in India for manufacturing purposes. The customer, being outside India, does not have a GSTIN, creating complications as the e-invoice portal does not allow IRN generation for transactions where the supplier and ship-to GSTIN are the same. Experts suggested treating the transaction as a symbolic transfer of ownership, potentially considering it an export, and advised using URP as the recipient. It was noted that e-invoices are not required for such transactions, and legal advice was recommended due to the complexity. (AI Summary)
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