How To Invoice A Foriegn Company for Delivery of goods in India

[Prashanth Jadhav]

Dear Sirs/Madam,

I am a registered GST Business in Bangalore.I provide IT products and supplies to customers.

I have recently received an Order from a IT services company situated in Saudi Arabia to supply laptops and IT accessories to their partner/customer in India Bangalore.

The foriegn company has made a wire transfer to my bank account.

Now how do I invoice the company. & Since the place of supply of goods is in India Kindly let me know how should the GST be charged in this case.

Thank you.

[KASTURI SETHI]

Sh. Prashanth Jadhav Ji,

It is a fact that goods remained within India. Goods did not move physically out of India. The said goods remained within same State and same city (Karnataka & Bangalore ) Hence the goods do not qualify as export under Section 2(5) of IGST Act, 2017 and Section 2 (18) & (19) of the Customs Act, 1962. Relevant extract is given below :-

Customs Act, 1962

As per Section 2 "(18) of Customs Act, 1962 “export”, with its grammatical variations and cognate expressions, means taking out of India to a place outside India;

(19) “export goods” means any goods which are to be taken out of India to a place outside India;"

In view of the above, I am of the view that invoice indicating CGST and SGST should be raised.

Disclaimer : These are my personal views and meant for education purpose. My views are not meant for any court proceedings.

[Ganeshan Kalyani]

I agree with the view of Sri Kasturi Sir, the transaction does not quality as export. Since place of supply is same state - CGST + SGST shall apply.

[KASTURI SETHI]

In continuation of my above reply, it is pertinent to add that this transaction/supply is also out of the definition and scope of 'deemed exports' as per Section 2(39) of the CGST Act, 2017 and Section 147 of the CGST Act, 2017 and Notification No. 148/2017-C.T., dated 18-10-2017 :

[DR.MARIAPPAN GOVINDARAJAN]

I also agreed with the views of Shri Kasthuri Sethi.

[Sadanand Bulbule]

Dear querist,

The experts have not only answered precisely but also expanded the concept of intra-state supply and export of goods. They have illuminated and revealed the reality of the nature of subject transaction for other visitors as well.

AI Summary

Export classification: goods supplied but remaining in India are subject to intra-state treatment and CGST plus SGST. Goods delivered and remaining within the same State do not qualify as export because export requires removal of goods out of India; the supply is an intra-state supply and should be invoiced with CGST and SGST. Receipt of payment from a foreign company does not change the place of supply, and the transaction is not within the scope of deemed exports.