GST effect of Merchant Exporter

[Binu Karuthedath]

Dear Expert

A is the Merchant Exporter bought goods from B for the export purpose by paid with IGST . A have to export the same goods to UAE by Forex invoice. A can't be executed any Bond or LUT.and A cannot show IGST in their export invoice, due to Foreign currency Invoice How A can export these goods under GST regime? and what is the documents prepared under GST export .is any IGST have to pay before exporting the goods byA , if yes how A can pay IGST?

[MUKUND THAKKAR]

A is the Merchant Exporter bought goods from B for the export purpose by paid with IGST

IGST is applicable if A procuring the goods from B and transaction is inter-State. if Intrastate CSGT+ SGST is applicable.

During the time of export need not require shown IGST amount in your export Invoice, you need to shown the said IGST amount in TAX Invoice and also mention that SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST on the body of Invoice, it mandatory to Issue Tax Invoice along with the your export invoice + packing list. no other documents are require for export.

IGST amount is not require to pay before exporting the goods. it is require to pay along with the your tax liability during the month. you can file the refund what ever IGST is paid with the reference of said export.

[Binu Karuthedath]

Dear Sir

Very Thanks for your valuable reply

I have one doubt regarding Freight charge & insurance.if we have shown the Freight Charge & Insurance separately in the export invoice I addition to goods value, is it applicable IGST ?

[KASTURI SETHI]

I support the views of Sh.Mukund Thakkar, Sir. You will also get refund of GST to be paid on freight and insurance up to port.

[Kishan Barai]

No No No NO

In export invoice, you should never charge IGST. Exports are Zero Rated under GST Law

FOB + Freight + Insurance = CIF would be your final value

Let me tell you there is no change in Export Invoice after GST

Many people are even writing on Export Invoice that "Export did with payment of IGST & applied for refund" or "Export against Bond" this is the biggest foolishness, such kind of things should never be shown in export invoice, foreign importer will not like it & will ask 1000s of questions, such thing has to be mentioned in Export Invoice prepared in GST Portal , that invoice is like a form & filled at the time of return, that is very different than commercial invoice.

Take care , it's easy but some situation makes it too complicated

AI Summary

Zero rated exports under GST permit merchant exporters to export without showing IGST on the commercial invoice, with refund avenues available. A merchant exporter who procures goods with IGST may export them as zero rated supplies: issue a domestic tax invoice recording IGST paid and separately issue the commercial export invoice without showing IGST to the foreign buyer. IGST need not be paid at the time of physical export but is accounted for in the exporter's tax return and can be claimed as a refund or used against tax liability. Freight and insurance up to port follow refund/credit treatment, and where no LUT is executed, refund/credit procedures apply.