GST for nri purchasing in india but taking it abroad
Vipin Kumar (127 Points)
27 June 2017Vipin Kumar (127 Points)
27 June 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174477 Points)
Replied 27 June 2017
You have to issue bill as usually given to consumer with applicable CGST & SGST......
Because POS is your store. (Address on bill will not affect POS)
Devansh Jain
(...)
(1269 Points)
Replied 27 June 2017
I find the answer by Mr. Dhirajlal incorrect...
All supplies to tourist are inter-sate supplies and attract IGST (refer sec 8 of IGST Act)
Further, the tourist will be eligible for refund of IGST paid by him on goods being taken out of India (refer sec 15)
For this purpose, "Tourist" is defined as a person who is not normally resident in India & stays in India for max 6 months.
Hence, CGST+SGST applicable only for tourist if staying in India for above 6 months (no refund of CHST+SGST)
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174477 Points)
Replied 27 June 2017
Thanks Mr. Devansh Jain for clarification.
Would be glad if you complete the thread by enlighting on steps to be followed for refund of IGST by the tourist.....
Devansh Jain
(...)
(1269 Points)
Replied 27 June 2017
As far as the query of Mr. Vipin is concerned, I believe he must have got the answer that he need to know the period of stay of the tourist (and his purpose of visiting India should be for legal immigration only) to check whether to charge CGST+SGST or IGST in the invoice issued to the tourist..
In addition to this, for the procedural aspect of redund of IGST by the tourist, the law is not really very clear. As per the International practice in the countries where GST is already implemented, a simple return/documentation is to be filed by the tourist at the port-of-exit only to get the refund of taxes paid by him. I would not be able to answer precisely to give 'steps for refund', but I will try to share my views on this ambiguous & open-ended law..
The section 15 (OF IGST Act) uses language "in such manner as may be prescribed sub ject to such conditions & safegaurds....". Hence a specific notification in this regard can be expected soon... In my opinion, there can be 3 possibilities: First possibility that governemnt can notify the sales to tourist as deemed export (under sec 147) or second possibility to add the category of tourist as a special category (under sec 55). In both these cases, an application would have to be filed for refund similar to normal refund in FORM RFD-01 or FORM RFD-10 (Through option of Facilitation Centers only as these tourists would not be registered in the common portal by themselves). Third possibility could be a seperate notification altogether in which instant refund would be given at the port-of-exit as like in many countries....
Let's wait and watch what the Governemnt decides...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174477 Points)
Replied 27 June 2017
Let's wait and watch what the Governemnt decides... |
Nicely explained..........
Devansh Jain
(...)
(1269 Points)
Replied 27 June 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174477 Points)
Replied 28 June 2017
Dear Devansh,
I really appreciate your basis of analysis based on the Rules incorporated........
Well, will you please throw more light over the issue:
Based on fact that:
"All supplies to tourist are inter-sate supplies and attract IGST (refer sec 8 of IGST Act)"
Now: For Composition dealers (MR. Vipin Kumar has not clarified about it in his query); they cannot supply any goods to tourist (of course, tourist meaning in actual sense, not staying long), because they cannot issue Tax invoice with IGST.
So, there arises a situation where:
(a) All the dealers must check customer’s place of origin, as soon as any invoice is made; specifically dealers under composition scheme and refuse them to supply any goods, if s/he is tourist.
(b) Tourist must be informed on arrival at airport, not to purchase any goods from dealers who are under composition scheme or URD.
Please correct me, if I am wrong.........
Devansh Jain
(...)
(1269 Points)
Replied 28 June 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174477 Points)
Replied 28 June 2017
That's Great.
So, as per your advise to Mr. Vipin Kumar (if he is under composition scheme), would be that he should refuse to supply goods to an outside customer in case he is liable to issue tax invoice; because the PoS is to be considered based on the destination of the customer and not his shop.
Devansh Jain
(...)
(1269 Points)
Replied 28 June 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174477 Points)
Replied 28 June 2017
No, I mean to say, what should be point of Supply for shop owner like Mr. Vipin Kumar?
If he is to judge the supply of his goods from his shop or based on the place from the customer's origin? Or on what base, he can charge IGST or SGST+CGST over his supply (when customer takes delivery of goods at his shop, but tourist from another state)?
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