XYZ (India) buying goods from PQR situated in Japan and instructing PQR to supply the goods directly to ABC situated in Nepal without bringing the same to India. The Invoice for the same is issued by TSI(India) on ABC in foreign currency and paying in foreign currency to PQR towards purchase of goods. No GST is paid on it by XYZ being Merchandise Trade. Is XYZ required to proportionately reverse ITC against this transaction?
Kaustubh Karandikar Asked question February 1, 2021