Reimburshment from oversease customers.

[Narendra Soni]

Dear Experts,

We have contract of export shipment on FOB basis, in some cases on request of foreign customer who has not their agent in India request us to arrange containers from shipping lines.In these cases we pay ocean freight to shipping lines and recover certain amount from such customer by raising commercial invoices for recovery purpose.These types of recovery also made against sample developed by us as sample development charges etc..

Now, In GST,Kindly suggest:-

1.Whether such types of recovery from customer is taxable under GST.

2.Can we declare our self as a service provider and issue Tax Invoice with '0'% IGST.i.e.no payment of GST on such services provided by us to customers.

3.Any other method to be used so that GST could not be paid or ITC is available to us if GST paid.

[MUKUND THAKKAR]

GST is not applicable to you,

company Act as a pure agent..

[Narendra Soni]

Sir how billing will be done.whethe tax invoice or any other document not charging GST.please guide.

AI Summary

Company Seeks GST Advice on FOB Export Shipments: Recovery of Container Costs and Tax Invoice Issuance Clarified A company involved in export shipments on an FOB basis is seeking advice on GST implications when arranging containers for foreign customers and recovering costs through commercial invoices. They inquire whether these recoveries are taxable under GST, if they can issue tax invoices with 0% IGST, or if there are methods to avoid GST payment while claiming ITC. An expert suggests that GST is not applicable as the company acts as a pure agent. Further clarification is sought on the billing process without charging GST.