Tax Invoice to be raised if goods are sold to foreign buyer without their actual movement
THE AUTHORITY OF ADVANCE RULING
The Question and Rulings as follows :
a) Whether the applicant raise the tax invoice addressed to the foreign buyer and delivery to applicant works by paying output GST and claiming back by the applicant as input GST? OR
b) Whether applicant raise self-invoice by paying the output GST and claiming back by the applicant as input GST? OR
c) Whether the applicant raise the tax invoice addressed to the foreign buyer by paying the output GST under reverse charge mechanism? OR
d) Applicant seeks the procedure to be followed under GST Act for discharging GST liability.
1. In the case of manufacture of Die by the applicant and invoiced to the recipient, without moving the goods, the applicant has to raise the tax invoice addressed to foreign buyer. Since it is an intra-State supply, he has to collect the CGST and SGST and discharge the liability. The applicant is not eligible to claim said payment as input tax credit on the invoice raised by him as he is not the recipient. Further if the said steel die is scrapped at applicant’s end as per the instruction of the overseas customer without moving out of the country, while supplying the die scrap to the third party, the applicant has to issue intra/ interstate tax invoice depending upon the nature of the transaction and collect and pay the applicable tax as per the provisions of GST Acts.
2. In the case of manufacture of Die by the Thailand supplier, if applicant physically imports the Die to a place in India then applicant has to pay the IGST on reverse charge mechanism and claim the IGST tax paid as input tax credit, subject to conditions applicable. Further if the steel die belonging to the applicant is scrapped at the location of the overseas supplier without die coming to India, then such transaction is ocurring outside the taxable territory, i.e. India and hence not under the purview of GST Acts.