Deemed Imports and Bill of Entry

ERPNext
1

Background
When a DTA unit buys goods from an SEZ and goods move into DTA, that movement is treated as a deemed import, and in law the DTA buyer is required to file a Bill of Entry.
I have created the supplier which is a SEZ with GST Category as SEZ in the address.

Issue 1
After booking the Purchase Invoice , I am not getting the option of Create Bill of Entry , the way we get when we book Purchase Invoice from a foreign supplier , Why ? I understand this is triggered when the supplier is flagged as overseas in the GST Category

We also tried creating a bill of entry manually for this SEZ however when we Fetch purchase invoices for this SEZ Supplier , the purchase invoices are not reflecting.

How do we handle deemed Imports , pls guide.

1 Like
2

It is already supported.
Address with country as India and gst category as Overseas is allowed.

  • Create a supplier address with an Indian address and gst category as Overseas.
  • Use that address in the Purchase Invoice
  • After submission, you will get the option to create a Bill of Entry.
3

  • Supplier must be foreign

    • Supplier Country ≠ Company Country

  • Purchase is marked as Import

    • In the Purchase Invoice, enable “Is Import”

  • Purchase Invoice exists

    • Bill of Entry is always linked to a Purchase Invoice

    • Usually, the PI should be submitted before creating the BoE

2. Company & system configuration

  • India Compliance enabled (for GST users)

    • Accounts Settings → Enable India Compliance

  • Customs Duty accounts set

    • Customs Duty Ledger

    • CESS / IGST on Import (if applicable)

  • Chart of Accounts supports customs duties

  • Default GST settings configured (if in India)

3. Purchase Invoice conditions

The Purchase Invoice must:

  • Be an Import Purchase Invoice

  • Have:

    • Supplier

    • Items

    • Taxes structure suitable for imports

  • Not already have a Bill of Entry submitted against it

4. Bill of Entry mandatory fields

When creating the BoE:

  • Company

  • Supplier

  • Linked Purchase Invoice

  • Bill of Entry Number

  • Bill of Entry Date

  • Port Code

  • Bill of Entry Type (Home Consumption / Bond, etc.)

  • Customs Duty, IGST, CESS amounts

5. Accounting behavior (important)

  • On submission, Bill of Entry:

    • Books customs duty & IGST

    • Adjusts the tax impact of the Purchase Invoice

  • You cannot submit multiple BoEs for the same Purchase Invoice

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4

Thanks for the response . but i have checked this part .

The issue is the supplier is not overseas but a SEZ , When indian supplier purchases from a SEZ even though the supplier is not overseas it is entitled to file Bill of entry.

@LukmanulHakkeem

5

Why “Create Bill of Entry” is NOT Triggered

The “Create Bill of Entry” option normally appears only when:

  • Supplier GST Category = Overseas

  • Country ≠ India

  • Import of Goods transaction type is selected

In your case:

  • Supplier GST Category = SEZ

  • Country = India

  • GSTIN exists (Indian GST registration)

So, the system treats it as a domestic SEZ transaction, not as an import from outside India.

:backhand_index_pointing_right: Therefore, the automatic Bill of Entry workflow (like in foreign imports) will NOT trigger.