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

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.