Inter Unit Transfer of Goods under GST (EOU to EOU), FEMA

[Ramaswamy S]

An EOU can pay in Foreign Currency to another EOU on the procurement. IN other words EOU can bill in FC to another EOU (pre GST).

Under the GST, EOU is treated at par with DTA. In that case can an EOU bill to another EOU in FC or in other words the settlement of the invoice by one EOU to another in FC.

Expert views solicited.

Regards

S.Ramaswamy

Posts / Replies

[RAMESH PRAJAPATI]

EOU scheme still exists in the Foreign Trade Policy and all entitlements are continued except few. Major changes are that EOUs are not customs bonded warehouse now and GST exemption is not there. But BCD exemption is given for interunit transfer from one EOU to another. Only GST is payable. So billing pattern will continue as pre-GST.

[Ramaswamy S]

thank you.

Regards

S.Ramaswamy