XYZ(India) are buying goods from PQR situated in Japan and are instructing PQR to supply the goods directly to ABC situated in U.K. without bringing the same to India. The Invoice for the same is then issued by XYZ on ABC in foreign currency and also paying in foreign currency to PQR towards purchase of goods. XYZ presently is not paying GST on this. As per the recent ruling of AAR, XYZ is required to pay GST on it. What should be now the stand of XYZ in view of this ruling? Kindly guide sir.
Supply of goods from a place in non-taxable territory to another place in the non -taxable territory without such goods entering into India is not treated as supply of goods as per para 7 of Schedule III of the CGST Act, 2017.
Based on facts the instant transaction cannot be exigible to GST as goods have not entered into India.
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