EXPORT CONSIGNMENT

[SURYAKANT MITHBAVKAR]

We are manufacturing Pharmaceutical Machinery. We are dealing in Domestic Sales as well as Export. Now, we have to clear export consignment wherein we have to generate EInvoice on 31.03.23 . Please note that material to be cleared without payment of GST (Under LUT). If my shipping bill for this consignment is passed in April-23 and Consignment sent in April-23. In this case can we consider this turnover in our FY 22-23 or FY 23-24 also let us know how this case will reflect in GST.

AI Summary

Pharma Machinery Firm Seeks GST Guidance on Fiscal Year for Consignment; E-Invoice Timing Crucial for Compliance A company manufacturing pharmaceutical machinery inquired about the correct fiscal year to recognize a consignment for GST purposes. They planned to generate an e-invoice on March 31, 2023, and dispatch the goods in April 2023. Respondents advised that if goods are ready by March 31, 2023, the transaction should be recorded in FY 2022-23 for GST, despite the actual dispatch occurring later. However, for accounting purposes, revenue recognition should align with the transfer of ownership risks and rewards, potentially causing discrepancies between GST turnover and financial records. Suggestions included issuing the e-invoice in April to avoid reconciliation issues.