Supply by EOU

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
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31 December 2019 XYZ(EOU) will be “Billing” the supply of API (Raw Material) to PQR (U.K.) and physically “Shipping” the supply to ABC(India). XYZ will receive the money in foreign currency from PQR. The formulation of the said goods viz. capsules will be directly exported to PQR by XYZ. 1) Is XYZ require to charge BCD + GST for such supply since ‘Bill To” is U.K. but ‘Ship To’ is India? 2) For the formulation directly exported, will there be any export benefit available to XYZ?

Rajesh Kumar

Rajesh Kumar (Expert)
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31 December 2019 Goods are exported only when goods are physically taken out of India. In the present case, the goods are not physically being taken out of India, it is not export of goods. Still, XYZ can receive payment in foreign exchange from PQR. The goods shall be shipped directly to ABC, on payment of IGST. XYZ shall be charging IGST from PQR and paying IGST. There shall be no custom duty as goods are neither being exported nor imported. No export benefit shall be available.