Bill To a Overseas Company Supply of goods Locally

[Prashanth Jadhav]

Greetings to you!

I request a clarification from the forum.

I got a business opportunity from an overseas customer from Saudi Arabia for supply of laptops.

I received the money in my bank account from the Saudi company.

The supply of the laptops was at Bangalore to their partners/business associates under a different name.

The Bill To be an Overseas Company and supply being within India.

I have charged GST on this transaction and have also remitted the amounts while filing GST.

Kindly let me know if this transaction can be considered deemed export and I am eligible for a GST refund.

Warm regards,

Prashanth Jadhav.

[Sadanand Bulbule]

Dear querist

In terms of Section 2[5]  of the IGST Act, there is no actual export of goods out of India. Hence it is an intra-city  supply of goods liable to SGST & CGST.  Receipt of money from abroad will not alter the nature of such transaction.

[KASTURI SETHI]

Dear Querist,

(i) You need to know what is the definition of deemed export. See Section 147 of CGST Act read with Notification No. 48/17-CT, & 49/17-CT both dated 18.10.17. Also read Para No.7.02 of Foreign Trade Policy in this context.   

(ii) My above reply is in support of the reply posted by. Sh.Sadanand Bulbule, Sir.              

[Ganeshan Kalyani]

Export of Goods: Sec. 2(5) of IGST Act, “export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India;

Since, laptops are not taken out of India, it is not an export of goods.

[Pradeep Reddy Unnathi Partners]

Agree with answers of the experts above

[Shilpi Jain]

Not a deemed export. 

AI Summary

Deemed export: supplies delivered within India billed to overseas buyers remain intra-state supplies liable to CGST and SGST.
Supplies billed to an overseas company but delivered within India are not exports because export under the IGST Act requires physical removal of goods; receipt of foreign payment does not change an intra India supply into an export. Such transactions are intra state supplies subject to central and state GST, and deemed export provisions and associated refund benefits do not apply when goods remain in India.