Dear Friends,
One of my clients sold the goods to exporters by charging 0.1% as deemed exports. In turn, the exporter has also exported the goods within the stipulated time. However, the exporter has not stated the GST No. & sale invoice no. in the shipping bill or Bill of Export also not registered with the Export Promotion Council or a Commodity Board recognized by the department of commerce. Further, the purchase order of the exporter is also not produced before the respective jurisdictional tax officer of the registered supplier. Due to this, the department asks my client to pay the tax amount. Please suggest to me, how to resolve this issue.
Thanks in Advance.
Client Faces GST Demand After Exporter Omits Key Details; Procedural Compliance and Contract Clauses Urged for Future Deals A client sold goods to exporters at a reduced GST rate of 0.1% as deemed exports, but the exporter failed to include necessary details like GST number and invoice number in the shipping documents and did not register with the Export Promotion Council. The tax department is now demanding payment from the client. Respondents suggest amending shipping documents per Customs Act sections, fulfilling notification conditions, or recovering tax from the exporter via a debit note. They emphasize the importance of procedural compliance and suggest including tax liability clauses in contracts to avoid future issues. (AI Summary)
TaxTMI 
TaxTMI 
