Question ID :
41049
GST on Bill to Party outside India and shipto party within India
Company X a foreign company from USA ordered materials from Company P in India and Company X asking to bill materials in US Dollars on X with US address and ship the materials to Company Y in India.
Is the above transaction is allowed under GST? if GST rate?
Whether Company P can receive money from Company X in USD for the above mentioned transaction?
Posted by
CA. BALASUBRAMANIAM P
on
May 20, 2021
Filed Under
GST
From gst perspective this transaction is allowed and would not be an export. Rate will be as applicable to the said goods.
Receipt of forex pls check from FEMA perspective.
Posted by
CA. SHILPI KATARIYA on
May 22, 2021
Answer ID :
81127
This is a bill to and ship to transaction under CGST Act, 2017 . This kind of transaction is allowed and no GST shall be applicable subject to filing of LUT and realization of sales proceeds to the seller exporter in foreign currency from the US Company within the time span prescribed under CGST Act, 2017 in harmonization with the time line for realization of sales proceeds under FEMA, 1999.
Posted by
CA. JHA SHANKAR KUMAR on
May 26, 2021