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Forign Trade

sona1 (MANAGER) (365 Points)

17 January 2023

We received a orders from outside India but goods shall be delivered within India and payment will be receivable through Foreign exchange

Our Question is :-

whether transaction shall be treated as export or domestic transaction ?
GST applicable in the above case?
If GST applicable then we will make 02(two) Invoice i.e Commercial Invoice & Indian Invoice ??

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4 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 January 2023

1. Cannot be Export , as goods never delivered beyond custom Frontier. as per Definition of export of goods u/s 2(5) IGST act , taking goods out of India. So it deemed to be domestic transactions.
2. Yes its an supply under Section 7, hence GST attracts.
3. you need to issue only one invoice as per the provsion of section 31 of CGST Act

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sona1 (MANAGER) (365 Points)
Replied 18 January 2023

One Invoice means Indian Invoice , if we create Invoice in Indian Rupees then Outside India party how to show this in account because we received from party USD.