TaxTMI 
TaxTMI 
Please advise for applicability of GST on advance payment from foreign buyers. Please consider that we are charging IGST in our Export Invoice while exporting the goods.
Applicability of GST on advances from foreign buyer
14 Aug 2017 
5 Replies 
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Zero rated supply: GST not payable on advances from foreign buyers; issue advance receipt voucher to avoid procedural lapse.
Advances from foreign buyers for export are not subject to GST where the supply is a zero rated supply; exporters may choose to clear goods with or without payment of IGST. Receipt vouchers under the CGST Rules must record prescribed particulars including supplier and recipient details, amount of advance, tax particulars and place of supply; practitioners recommend issuing advance receipt vouchers for foreign advances to ensure proper accounting and avoid procedural lapse. (AI Summary)
Advances from foreign buyers for export are not subject to GST where the supply is a zero rated supply; exporters may choose to clear goods with or without payment of IGST. Receipt vouchers under the CGST Rules must record prescribed particulars including supplier and recipient details, amount of advance, tax particulars and place of supply; practitioners recommend issuing advance receipt vouchers for foreign advances to ensure proper accounting and avoid procedural lapse. (AI Summary)