when to issue 'bill of supply'

[Kaustubh Karandikar]

1. XYZ had kept the goods in bonded warehouse by filing in – to – bond bill of entry. Subsequently, the customer of XYZ is clearing the goods from bonded warehouse by filing ex- bond bill of entry and paying the necessary import duty. XYZ is billing the customer by issuing only commercial invoice. Is this correct or XYZ also need to issue ‘Bill of Supply’.
2. XYZ(India) is making a ‘High Sea Sale Transaction’. XYZ is required to issue only a Commercial Invoice or also need to issue ‘Bill of Supply’?
3. XYZ (India) is buying goods from PQR (UK) and directly delivering to ABC(USA). XYZ is required to issue only a Commercial Invoice or also need to issue ‘Bill of Supply’?

AI Summary

Indian Entity Not Required to Issue 'Bill of Supply' for Bonded Warehouse, High Sea Sales, or Intermediary Trade A discussion on a forum addresses whether XYZ, an Indian entity, should issue a 'Bill of Supply' alongside a commercial invoice in three distinct scenarios: bonded warehouse transactions, high sea sales, and intermediary trade. The consensus among contributors, including Amit Agrawal and Kasturi Sethi, is that a commercial invoice suffices in all cases, as these transactions do not involve exempt supplies. Raghunandhaanan Rvi elaborates that in bonded warehouse and high sea sales, the commercial invoice supports customs procedures, while intermediary trade involves no goods entering India, thus not necessitating a 'Bill of Supply.'