export of goods, Goods and Services Tax - GST

[SHARAD ANADA]

1) Mr. A of India Export Goods of USD 10,000/- Without payment of tax to Mr. X of Africa.

2) When Goods reached Africa Mr. X refused to take delivery of the goods.

3) Mr. A of India Issued Credit Note to Mr. X of Africa with condition that Mr. X will born all the cost of freight, port charges at Africa etc. for USD 3000. For this $3000 Mr. A of India will raise Invoice on Mr.s X of Africa.

4)Now Mr. A of India Contacted Mr. P in Africa for selling his goods at Africa port. Mr.

5) P agrees to purchase goods at condition that all the expenses including custom duty of Africa will be born by Mr. A of India.

What will be GST implication in such transaction.

Posts / Replies

[KASTURI SETHI]

Dear Sh. Sharad Anada Ji,

1. The goods in question stand exported. It has no relevance whether exported to consignee X or Y. It is zero rated supply. It cannot be denied.

2. The amount of USD 3000 retained by A is in relation to goods exported. Hence it qualifies zero rated supply.

3. The payment made to an other consignee called P on account of Customs duty of Africa does not conform to the parameters of "consideration" and "supply".

Hence GST is not payable/applicable.