Question28:
We precure goods in foreign country and supply to another country without
bringing to india but payment is received from customer and also paid to the
supplier of goods by us. What is the impact of GST and the transaction to be
shown in which colim of GST returns
Answer:
We understood your question as follow
You have one of your arm operating out side india that unit has purchased some
goods and sold it to some other country The purchase as well as sale both are
not booked in Indian unit.
The transaction of " procuring of goods in foreign country and supply to another
country without bringing to India" outside the the purview of "Import of goods"
and "Export of Goods" according to definition given under IGST Act under
section 2(5) and 2(10).
The same is as follows:-
(5) 'export of goods' with its grammatical variations and cognate expressions,
means taking goods out of India to a place outside India;
(10) ''import of goods' with its grammatical variations and cognate expressions,
means bringing goods into India from a place outside India; Thus the above
transaction is outside the scope of levy of Integrated tax as per section 5 of
IGST act.
Note In case any invoice is raised by the unit operating in India for the
transaction then our answer may be changed so please let us know if the
situation is different from that we under stood. . (Reply Dt. 10/01/2018)