Small GST issue in the books of XYZ
- ABC is a Pvt Ltd independent entity with common directors as XYZ pvt ltd.
- ABC has received export orders of 1 crores upon its recent formation. It is required to be the final EXPORTER of the goods.
- Our aim is to show this sales in XYZ books for which ABC can issue this order to XYZ for getting it manufactured and XYZ can them show this domestic sale in its books.
>> PROBLEM to be resolved
- XYZ at present is an 100% EOU and gets billed at 0.01% GST from its suppliers against the LUT [exports] it does.
- IF XYZ executes this order for ABC, then XYZ will not be the exporter and have to pay applicable GST.
- What should be the supply chain in terms of a flow chart to address the following
- What % of GST will be paid by XYZ to its suppliers for apparel [ready made garments] and home furnishings and home décor items ?
- How will you handle the purchase order generation of XYZ to its vendors and what changes would have to be made in the GST part of XYZ which at present ships under LUT?
- What will be the process of REFUND of GST for XYZ ?
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