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Importer of Record (IOR) Services in India

 

It can be difficult for a foreign company to import goods into India. Seamless with trustworthy Importer of Record (IOR) services. Partner with an IOR to handle imports and avoid legal issues when your Indian customer isn’t GST-registered or you lack a local presence.

What Does an Importer of Record (IOR) Do?

The IOR legally submits the Bill of Entry and customs paperwork, follows the Indian Customs Act, pays customs duties and IGST, and clears and delivers goods to the recipient in India. This service helps overseas businesses ship goods without setting up a local entity or facing delays.

When Should You Use IOR Services?

In the following situations, IOR services are crucial:

  • You plan to ship goods to India under Delivered Duty Paid (DDP) terms; your company is based outside of India and does not have an Import Export Code in Chennai (IEC) or GST registration in Chennai.
  • You wish to reduce the possibility of fines for misdeclaration or delays at customs.In all such cases, an IOR serves as your official and legally compliant importing representative in India.

How IOR Services Work: Step-by-Step

How Importer of Record in Coimbatore  Operate: A Comprehensive Guide

IOR services are intended to lighten your workload and make imports easier. The usual procedure goes like this:

  1. Designating an IOR: An Indian IOR provider is partnered with by the international seller, middleman, or freight forwarder.
  2. Payment of Taxes and Duties: Usually covered by the service charge, the IOR pays the required IGST and customs duties.
  3. Final Delivery: No GST registration is necessary on the buyer’s end; the goods are cleared and delivered to the recipient in India.

In India, end users do not need a GST number in order to comply with customs and tax regulations.

Advantages of Using IOR Services in India

IOR solutions provide significant operational and strategic advantages in addition to legal coverage.

    • You don’t need to set up a local entity.
    • The IOR handles all compliance and liabilities
    • Flat-rate pricing makes DDP budgeting easy

IOR services guarantee a smooth delivery and peace of mind whether you’re shipping medical devices, industrial tools, electronic components, or IT hardware.

Essential Documents for IOR-Enabled Imports

Specific documents to use IOR services in India and ensure smooth, compliant imports.

  1. The exporting company’s import authorization letter
  2. Business Packing List & Invoice
  3. Bill of Lading, Airway Bill, or Shipping Bill

To prevent penalties, hold-ups, or customs rejections, accurate documentation is essential..

Why Choose Us for IOR Services in India?

We provide extensive knowledge of customs, logistics, and compliance to enable foreign companies to import into India with assurance and effectiveness.

Here’s why international exporters have faith in us:

  • Easy, all-inclusive pricing and a clear import procedure
  • Demonstrated experience managing DDP shipments across a variety of industries
  • You have no legal responsibility—we take care of everything

We handle GST Registration in Coimbatore ,every step from the preliminary paperwork to the delivery and customs clearance, so you can concentrate on expanding your company in India.

Final Thoughts

India’s booming market offers massive opportunities, and with IOR services, entering it is easier than ever—no local office, no GST headaches, just fast and compliant imports.

If you’re an overseas supplier, distributor, or exporter looking to ship to India without complications, our Importer of Record (IOR) service is the hassle-free solution for compliant and worry-free importing.

 

GST TDS Explained: When to Deduct, How Much, and When to Pay

 

Understanding GST TDS Under Section 51 of the CGST Act

Did you know that the Goods and Services Tax (GST) also uses the Tax Deducted at Source (TDS) mechanism in addition to income tax?

Certain entities, including government departments, local authorities, and other notified bodies, must deduct TDS under Section 51 of the CGST Act when they pay suppliers of taxable goods or services. This regulation promotes better compliance and transparency in the GST system.

So, under GST, who must deduct TDS? When should they deduct it? How much should they deduct? And above all, how and when should they make the payment?

 Real-World Scenario to Understand GST TDS

Contract Value (excluding GST): ₹2,60,000
Let’s assume a vendor has entered into a contract worth ₹2.6 lakhs with a government department.

The vendor issues two invoices over the contract period:

  • Invoice 1: ₹2,40,000 (Issued in April)
  • Invoice 2: ₹20,000 (Issued in December)

Now, let’s evaluate TDS applicability.

 Is TDS Applicable in This Case?

The threshold for TDS under GST is ₹2,50,000 per contract (excluding GST). Since the total contract value is ₹2,60,000, TDS is applicable—even though each invoice alone is less than ₹2.5 lakh.

Important Note:
TDS under GST is applied per contract, not per invoice or vendor.

 TDS Calculation Breakdown

Let’s calculate the TDS deduction on both invoices.

 Invoice 1 (April)

  • Taxable Value: ₹2,40,000
  • TDS Rate: 2% (1% CGST + 1% SGST or 2% IGST as applicable)
  • TDS Amount: ₹4,800
  • Due Date to Pay TDS: 10th May

Invoice 2 (December)

  • Taxable Value: ₹20,000
  • TDS Rate: 2%
  • TDS Amount: ₹400
  • Due Date to Pay TDS: 10th January

When Should You Deduct TDS Under GST?

TDS must be deducted at the time of payment to the supplier or when the invoice is booked, whichever is earlier.

This is crucial for staying compliant, as delays or incorrect deductions can attract interest and penalties.

Key Compliance Tips for GST TDS

Here’s what every deductor should keep in mind:

  1. Applicability:
    • TDS applies only if the contract value (excluding GST) exceeds ₹2.5 lakh.
    • It applies per contract, not per invoice or per vendor.
  2. Rate of TDS:
    • 2% of the taxable value (excluding GST).
    • If supply is intra-state, TDS is split as 1% CGST + 1% SGST.
    • If inter-state, then 2% IGST is deducted.
  3. Deposit Timeline:
    • Deducted TDS must be deposited with the government by the 10th of the following month.
  4. Interest on Late Payment:
    • If TDS is not deposited within the due date, interest at 18% per annum applies.
  5. Filing and Certificates:
    • Deductors must file Form GSTR-7 monthly.
    • TDS certificates must be issued to suppliers in Form GSTR-7A.

What If You Miss a TDS Deadline?

If you delay depositing the deducted TDS or fail to issue TDS certificates on time:

  • Interest @ 18% per annum will be levied from the due date till actual payment.
  • The deductee (supplier) might not receive credit for the deducted amount until the deductor files GSTR-7 and issues the TDS certificate.
  • Non-compliance can also lead to penalties and legal proceedings under GST law.

Quick Summary: GST TDS Compliance Checklist

 Requirement Action
Threshold TDS applies if contract exceeds ₹2.5 lakh (excluding GST)
Rate 2% on taxable value
Deduction Timing At payment or invoice booking (whichever is earlier)
Deposit Due Date 10th of next month
Return Filing GSTR-7 monthly
TDS Certificate GSTR-7A to be issued to vendor
Interest on Late Payment 18% per annum

 

 Final Thoughts

Particularly for notified entities and government agencies, TDS is a GST compliance requirement. Although it might appear technical, correctly adhering to the regulations guarantees that vendors receive accurate credits and that neither party faces penalties.

Review your contract values carefully, make sure that deductions are made on time, and file returns right away if you are involved in contracts with such entities that exceed ₹2.5 lakh.

Businesses with AATO of ₹10 Cr and above Must Report e-Invoices Within 30 Days

Businesses with AATO of ₹10 Cr and above Must Report e-Invoices Within 30 Days

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Starting from April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of ₹10 Crore or more must report e-Invoices, including invoices, credit notes, and debit notes, within 30 days of issuance on the Invoice Registration Portal (IRP). For instance, an invoice dated April 1, 2025, must be reported no later than April 30, 2025.

Overview of the New Compliance Requirement

In an effort to strengthen compliance and optimize the e-invoicing framework under GST, the Goods and Services Tax Network (GSTN) has introduced a mandatory time limit for reporting e-invoices. The revised guideline, effective from April 1, 2025, lowers the turnover threshold for this requirement from ₹100 Crore to ₹10 Crore in AATO.

Key Changes in the Advisory

Previous Restriction for Businesses with ₹100+ Crore AATO

According to an advisory issued on September 13, 2023, businesses with an AATO of ₹100 Crore or more were required to report e-Invoices within 30 days of issuance. Any invoice, credit note, or debit note exceeding this timeframe was not permitted for reporting on the IRP.

Expansion to Businesses with ₹10+ Crore AATO

With the latest directive released on November 5, 2024, the threshold has been lowered to ₹10 Crore. As a result, from April 1, 2025, businesses falling under this category will be unable to generate an Invoice Reference Number (IRN) for any invoice, credit note, or debit note that exceeds 30 days from its issuance date.

Implementation Timeline

To allow businesses sufficient time to adapt to the new regulation, the implementation is scheduled for April 1, 2025. This transition period ensures that affected taxpayers can update their invoicing systems and workflows accordingly.

No Impact on Businesses Below ₹10 Crore AATO

This new compliance requirement does not apply to businesses with an AATO of less than ₹10 Crore. Such businesses can continue reporting e-Invoices without any specific time restriction.

Understanding e-Invoicing Under GST

E-invoicing is an electronic mechanism for authenticating invoices, ensuring that all business transactions are recorded with the GSTN and reported to the central GST portal. Initially designed for large corporations, the e-invoicing mandate has gradually been expanded to include small and medium-sized enterprises (SMEs).

Unlike conventional invoice generation directly on the GST portal, businesses prepare invoices through their internal accounting systems and then upload them to the IRP. The portal validates each invoice and assigns it a unique Invoice Reference Number (IRN), ensuring its authenticity. This validated data is then automatically shared with the GST and e-way bill portals, reducing manual data entry and enhancing compliance accuracy.

Benefits of the 30-Day e-Invoice Reporting Limit for SMEs

The extension of the 30-day reporting mandate to businesses with an AATO of ₹10 Crore brings multiple benefits:

  • Reduced Compliance Burden: SMEs now have a defined timeframe for reporting e-Invoices, minimizing last-minute rush and potential non-compliance.
  • Enhanced Cash Flow Management: By providing additional time for reporting invoices, businesses can manage their cash flow more effectively, improving financial planning.
  • Encouraging Adoption of E-Invoicing: The extended timeframe is expected to drive wider adoption of the e-invoicing system among SMEs, fostering greater transparency and operational efficiency.

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Consequences of Failing to Report Within 30 Days

Failing to adhere to the 30-day reporting limit may result in significant challenges for businesses:

  • Invoice Rejection by IRP: If an invoice is submitted beyond the stipulated timeframe, it will be automatically rejected, making it impossible to generate an IRN.
  • Need for Re-Issuance: Businesses will be required to regenerate invoices, leading to potential confusion, duplication, and additional administrative efforts.
  • Delays in Cash Flow and ITC Processing: Late reporting may hinder the seamless processing of input tax credits (ITC), which could impact relationships with vendors and customers.
  • Risk of Penalties and Non-Compliance Issues: Consistent non-adherence to reporting timelines can trigger GST audits, legal notices, and financial penalties, adding to the compliance burden.

Final Thoughts

To comply with the revised e-invoicing regulations, businesses must ensure timely reporting of invoices. Implementing a structured invoicing system will not only help prevent penalties but also streamline overall GST compliance. Staying informed about regulatory updates and adopting efficient invoicing practices will enable businesses to manage compliance obligations effectively and avoid potential disruptions.