TaxTMI 
TaxTMI 
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?
GST implication on pass through invoice by Indian Compnay
31 Oct 2025 
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Pass-through invoicing by an Indian company may fall outside GST if goods remain outside the taxable territory.
Where goods remain outside the taxable territory and do not enter India, supplies between non taxable territory places fall outside the scope of supply and attract no GST; invoicing by an Indian entity does not itself create taxability, but robust documentation is necessary. Separately, when funds are received or paid in India for such pass through transactions, merchanting trade and FEMA compliance must be considered, since reimbursements with no commission may still raise foreign exchange regulatory issues. (AI Summary)
Where goods remain outside the taxable territory and do not enter India, supplies between non taxable territory places fall outside the scope of supply and attract no GST; invoicing by an Indian entity does not itself create taxability, but robust documentation is necessary. Separately, when funds are received or paid in India for such pass through transactions, merchanting trade and FEMA compliance must be considered, since reimbursements with no commission may still raise foreign exchange regulatory issues. (AI Summary)