03 March 2021
We are Andhra Based Export Company holding GST Number of Andhra Pradesh State. We have to export through Cochin Port (Kerala ). Our supplier is Madhya Pradesh Based Manufacturing Company and will directly deliver the goods to us at some registered ware house in Kerala and from the said ware house we will load the consignment for Cochin Port so that shipment should be effected through Cochin Port.
Whether in such transaction certain compliance will have to be filed with the GST Department of Andhra Pradesh.
07 July 2024
In your scenario, you are an Andhra Pradesh-based export company purchasing goods from a Madhya Pradesh-based supplier and exporting them through Cochin Port in Kerala. Here’s how GST compliance will apply:
### GST Compliance Steps:
1. **Interstate Purchase**: - When your supplier in Madhya Pradesh delivers goods to a registered warehouse in Kerala, it is an interstate supply. - Your supplier will charge IGST on this transaction.
2. **Storage and Transportation**: - Goods stored in the registered warehouse in Kerala before being shipped from Cochin Port.
3. **Export from Cochin Port**: - You will export the goods from Cochin Port. - Export of goods is treated as a zero-rated supply under GST.
### Compliance Requirements:
1. **GST Registration**: - Ensure your Andhra Pradesh GST registration is valid and active. - You don’t need separate GST registration in Kerala for this transaction as long as the warehouse is used for storage before export.
2. **Invoice and E-way Bill**: - Ensure proper invoicing by your Madhya Pradesh supplier, indicating the delivery address of the registered warehouse in Kerala. - Generate an e-way bill for the transportation of goods from Madhya Pradesh to the Kerala warehouse.
3. **Export Documentation**: - Prepare export documentation, including the shipping bill, commercial invoice, and packing list. - Declare the export consignment details to customs at Cochin Port.
4. **LUT/Bond**: - If you export goods without payment of IGST, ensure you have a Letter of Undertaking (LUT) filed with the GST department. If not, you need to pay IGST on export and later claim a refund.
5. **GST Return Filing**: - Report this transaction in your GSTR-1 under the export section, mentioning the details of the export consignment. - Ensure to mention the IGST paid on the purchase of goods from Madhya Pradesh and claim the input tax credit (ITC).
### Steps for Export Procedure:
1. **Purchase Order**: - Place a purchase order with your Madhya Pradesh supplier.
2. **Delivery to Kerala Warehouse**: - Supplier delivers goods to a registered warehouse in Kerala with an appropriate e-way bill.
3. **Storage and Preparation**: - Store goods in the Kerala warehouse and prepare for export.
4. **Export from Cochin Port**: - Load the goods from the warehouse to Cochin Port. - Complete export customs formalities and documentation.
5. **File GSTR-1 and GSTR-3B**: - File GSTR-1 to declare export details. - Claim ITC on IGST paid to the Madhya Pradesh supplier in your GSTR-3B return.
### Example:
**Transaction Flow**: 1. **Purchase from Madhya Pradesh**: - Invoice from Madhya Pradesh supplier to your Andhra Pradesh entity, with delivery address as Kerala warehouse. - IGST charged by the supplier.
2. **Storage in Kerala**: - Goods stored temporarily in Kerala.
3. **Export from Cochin Port**: - Export goods with zero-rated supply. - File required documents with customs at Cochin Port.
### Key Points: - **LUT/Bond**: Ensure you have an LUT for exporting without IGST. - **E-way Bill**: Generate for interstate movement. - **Proper Documentation**: Maintain accurate records for GST compliance and customs.
By following these steps and ensuring compliance with GST regulations, you can effectively manage the transaction and export process from Cochin Port while holding your GST registration in Andhra Pradesh. If you have specific concerns or need further assistance, consulting with a GST professional or tax advisor is advisable.
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