Bill of Supply

[Kaustubh Karandikar]

XYZ is supplying goods by making 1) High Sea Sale 2) Importing, Storing in Customs bonded warehouse without paying import duty. These goods are cleared from customs bonded warehouse by the customer of XYZ by paying import duty. XYZ is simply giving Commercial Invoice without GST. In both the situation since GST is not paid by XYZ, whether XYZ is required to prepare ‘Bill of Supply’ or only ‘Commercial Invoice’ is sufficient?

AI Summary

XYZ's High Sea Sales: Commercial Invoice Is Enough Under GST, No Bill of Supply Needed. XYZ is involved in high sea sales and storing imported goods in a customs bonded warehouse without paying import duty, which is paid by the customer upon clearance. The query is whether XYZ needs to issue a 'Bill of Supply' or if a 'Commercial Invoice' is sufficient. Respondents agree that under GST regulations, since XYZ is not supplying exempted goods or operating under the Composition Scheme, and because the goods are not considered a supply under GST, a commercial invoice suffices, and a bill of supply is not required.