Export of goods without Importing into India

[Shubham Kansal]

Dear Sir/Ma’am, I want to know about the RBI & FERA/FEMA compliancies for Export of goods without Importing into India. Indian company in the receipt of order from a county (X) for which Indian company have Import same goods from another country (Y), company is planning to deliver the same goods directly from Country (X) to Country (Y) without Importing into India. Kindly confirm about the RBI & FERA/FEMA compliancies for the same

[YAGAY andSUN]

RBI/2019-20/152 A.P. (DIR Series) Circular No.20 January 23, 2020

GST will also be applicable as per various Advance Rulings. Please check.

[Shubham Kansal]

Thanks...

can you share AAR also?

[MUKUND THAKKAR]

You need to co related inward remittance and outward remittance with the nominal margin of 5 to 10%. No GST is applicable under sh.(III) (7) of CGST.

[Jayaprakash Kamath]

Transaction can be done under Merchanting trade transaction. Transaction date will start from shipment date or outward remittance date or inward remittance date whichever is earlier and transaction should be completed within nine months. Outlay of funds if any should not be more than four months

AI Summary

Indian Company Seeks Guidance on RBI Circular No. 20 for Merchanting Trade; GST Implications and Compliance Tips Discussed An Indian company seeks guidance on RBI and FERA/FEMA compliance for exporting goods directly from Country X to Country Y without importing them into India. Responses suggest referencing RBI Circular No. 20, dated January 23, 2020, and note that GST may apply based on advance rulings. It is advised to correlate inward and outward remittances with a nominal margin of 5-10%, and no GST applies under a specific CGST provision. The transaction can be conducted as a Merchanting trade transaction, which must be completed within nine months, with any fund outlay not exceeding four months.