IRN -for bill to a foreign customer ship to same GSTIN or different GSTIN

[Nash Industries I Pvt Ltd]

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.

AI Summary

E-invoice applicability for cross-border billing with domestic retention of goods raises export versus domestic supply classification.
The issue is whether an IRN/e-invoice must be generated where a supplier invoices a foreign bill-to (no GSTIN) in foreign currency but retains the tools in India (ship-to same GSTIN as supplier) and charges CGST+SGST because goods do not leave India. One approach treats the tooling invoice as a symbolic transfer of ownership and export, using URP as recipient for e-invoicing; an alternate approach treats it as a domestic supply with tooling treated as reimbursed cost and not exportable. Practical portal restrictions and the need for business-model or compliance adjustments are highlighted.