Overseas party has billed to us (India) and shipped to overseas (Germany), so there are two invoices one is Overseas to us and second export invoice from us to Germany, shipping bill is not made as goods not reached to our India territory, here what will be GST impact on this
06 July 2024
In this scenario, where goods are billed directly to you (in India) by an overseas party but shipped directly from overseas (outside India) to another destination (Germany), the GST (Goods and Services Tax) impact typically depends on whether you are importing these goods into India or facilitating a direct export from India to Germany.
Here’s a breakdown of possible scenarios and their GST implications:
1. **Direct Import into India:** - If you are considered the importer of record and the goods are imported into India, you would need to pay IGST (Integrated Goods and Services Tax) on the transaction value of the goods as determined under the GST valuation rules. The invoice from the overseas party to you would likely include the IGST amount.
2. **Direct Export from India:** - If the transaction is structured in a way where you are facilitating a direct export from India to Germany (even though the goods never physically enter India), the export would generally be treated as a zero-rated supply under GST. This means that you can claim a refund or a credit for any IGST paid on inputs or input services used to make that supply.
In both cases, it’s essential to ensure proper documentation and compliance with GST regulations. You may need to consult with a GST expert or a customs broker to determine the exact GST implications based on the specifics of your transaction and the nature of goods involved.
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