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Bill to Indian company Ship direct to buyer in country X from seller in country Y

15 November 2023

An export import company from India secures an order from country X @ USD 200 to supply agri products (40MT) which are procured from a supplier in Country Y @ USD 150. Can this transaction be termed as Import and Export Bill to Ship to; Bill to India Ship to Country X. Bank tells this is not import or export as goods are not supplied from/to india. How do this type of transactions take place are they legal in India. Does RBI have any direction in respect of remittances and whether GST is applicable.

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 15 November 2023

If Goods were shipped directly from Country Y ( non taxable territory) to Country X ( another non taxable territory) without entering in to India, then such transaction is neither supply of Goods nor services as per Schedule III sub section 7 of CGST Act , therefore GST not applicable. Take others opinion as well.