Documents under GST for Billed to foreign Company and shipped to Indian company, Goods and Services Tax - GST

[Dilip singh]

Dear All

One of our client Indian Company (IC) is returning damaged goods to its foreign company(FC) from whom it has imported few months back , but FC is asking to return the goods to its Indian subsidiary (IS) and raise invoice to the FC for payment. In this case under which documents the IC shall transfer the goods to the IS. we know it will not be treated as Exports as the goods are not moved outside India. We want to know how to pay GST on this and under which documents goods will be moved withing India. within India goods will be send from one state to another state. please let me know what should be charged IGST or CGST&SGST.

Rakesh

Posts / Replies

[Shilpi Jain]

If this is a return of damaged goods then a credit note can be raised by the FC? In which case there should not be any GST liability as the goods, instead of being sent to the foreign supplier is being sent to another person under the direction of such supplier. In which case the IC can send it under a DC to the IS as it is not a supply but the money received from the FC is a reduction in the original sale price.