Goods to be Imported under Bill to Ship Concept, Goods and Services Tax - GST

[Subhajeet Banerjee]

Dear Sir,

One my Supplier "X" who is in Singapore wants to Send the Goods to India under Bill to Ship concept, i.e They want to Bill to a party in Chennai Say "Y" and ship it to Delhi Say "Z". Whether this type of transactions is allowed as per GST and Custom act.

Posts / Replies

[Shilpi Jain]

The tax implications have to be seen based on the business scenarios and not the other way around.

These kind of transactions can be done if genuine. Assuming that party Y will also raise an invoice to Z for the transaction between them.

[Alkesh Jani]

Shri,

I am of the view that this kind of transaction is not available under the Customs Law, as Bill to Ship to concept is under GST Law. The High Seas sale is available under Customs Law. For Bill to Ship to Transaction one need to clear the goods i.e. to cross the customs frontier.

In simple language, all the goods lying in the Customs area, the owner of the goods is Government of India and when you file a Bill of Entry, you claim the ownership of the goods i.e. with relevant documents such as Invoice or agreement for high seas sale etc. and than goods are release on payment of duty.

Thanks

[raghunandhaanan rvi]

Sir,

I do agree with the views of Shri. Alkesh Jani. . The original importer either to sell goods under High Sea Sale or make inbond transfer under Section 59(3) of the CA 62. In both case the last buyer has to file the home consumption bill of entry and clear the goods on payment of duty.

[Shilpi Jain]

When it is billed to Y - the title documents to the goods would be with Y and he would be required to clear the goods by filing bill of entry.

If you would require Z to clear, as stated by the other experts, what I meant in my earlier reply was invoice to be issued by Y to Z, would mean a sale to be made by Y to Z and thereby Z can clear the goods by filing BoE.

[Santhosha Naik]

Dear Sir,

I have one query,

One of my Supplier "A" who is in China wants to Send the Goods to India under Bill to Ship from concept, from "B" is in China. i.e they wants to send the goods directly from "B". And "B" ship it to "C" is in India along with bill to ship from basis for invoice amount of $120. "A" send bill to "C" for $260. and customs duty paid only on $120 Whether this type of transactions is allowed as per GST and Custom act. and for which amount "C" has to pay

Please reply sir

Thank u