Goods bought, sold overseas by domestic firms liable to GST in India: AAR

Vendor would issue invoice on applicant against which payment would be made in foreign currency and applicant would raise invoice on customer and would receive consideration in foreign currency.

A domestic company buying goods from abroad and selling to another country will have to pay GST on such transactions even if the said products are not entering the Indian territory, the Authority for Advance Ruling (AAR) has said.

On an application filed by Sterlite Technologies, the Gujarat-bench of AAR has ruled that GST is payable on goods sold to customer located outside India, where goods are shipped directly from the vendor's premises (located outside India) to the customer's premises.

The applicant had sought to know whether the goods and services tax (GST) would be levied on merchant trade transactions