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GST on Foc Invoice

kiran (accountant) (428 Points)

19 September 2018

we send goods on foc for testing within India & outside India then how treat GST in this case.

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4 Replies

Balaji Ramalingam (Student - CA Final) (285 Points)
Replied 19 September 2018

If there is no consideration, it is not covered under the definition of Supply hence, no need for GST. But if it covered under schedule 1 then GST liability may arise

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Dnyanesh Patade (Practice) (185 Points)
Replied 20 September 2018

actually , goods send for testing will not be FOC since there is no supply, only goods movement for testing i.e. job work.
and in case of outside India, it needs to be check for customs act since there is time limit on receiving goods back from testing and all.

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kiran (accountant) (428 Points)
Replied 20 September 2018

dear sir,
but supplier destroyed his end which goods send for testing at the end of Month we calculate GST & pay.

vinod kumar lalwani (Practice) (199 Points)
Replied 20 September 2018

If you hv taken input then you have to revrse the same and for books purpose you have to prepare an invoice in your name only wih nil amount , and with this treatment you can reduce inventory and make your invocie serial number in running order