GST implication on pass through invoice by Indian Compnay

[Dhruva]

A foreign Company has given an order of some goods to other foreign company. But due to some issue in conducting commercial transaction. The supplier foreign company has raised invoice to its sister concern in India and the Indian company has raised invoice to the receiver foreign company with no commission or fee. what will be the GST implication?

AI Summary

Transactions of goods between two foreign locations not entering India are outside GST taxable territory; Indian pass-through invoices not taxable If goods move between two foreign locations and never enter India, the transaction falls outside India's taxable territory and is treated as neither a supply of goods nor services for GST purposes, so no GST is payable. An Indian entity merely raising a pass-through invoice without any commission or service does not, by itself, create a taxable supply. The Indian entity should maintain robust documentation evidencing export/non-entry into India and the contractual chain to support the GST-exempt treatment.