-An indian proprietorship registered under GST is in the business of MTT exports. Goods are purchased from supplier foreign country A & sold to customer in foreign country B without the goods coming to India or even touching any Indian port. Goods are directly shipped from country A to B by means of a switch BL transaction -Another gst registered dealer based in India helps the proprietorship to secure orders from the customer in country B for which it earns a commission from the proprietorship -The proprietorship has no business other than this MTT export for utilizing the input credit generated due to the GST paid on commission -Can the proprietorship get a refund for this GST paid
In my opinion since the goods being purchased from country A is not import and hence goods supplied to country B won't be export and since such transaction are outside the ambit of GST by Schedule III and they neither goods or service and accordingly not liable for GST.
Hence, the services taken for such business won't be eligible for credit in my opinion.
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Thank you.
Hello,
Hope you are doing well!!
An Indian proprietorship registered under the Goods and Services Tax (GST) is engaged in MTT exports without the goods entering India, there are a few key points to consider regarding GST refunds:
Applicability of GST: According to your interpretation of Schedule III, if the goods purchased from country A and supplied to country B do not fall under the definition of supply as per GST laws, then these transactions considered outside the ambit of GST. In that case, no GST would be applicable on the transactions, and no GST refund would be available.
Input Tax Credit (ITC) on Commission: If the GST registered dealer in India earns a commission from the proprietorship for securing orders, and GST is charged on the commission amount.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
Merchant Trade Transaction fall under NO GST Supply as per the amendment done 2 years back and accordingly you are not eligible to claim any refund of GST Charged by the local proprietorship firm
However putting actual value and country details in place we can plan out structure to avoid GST on the transaction if any possible
