PATMENT OF INTEGRATED GOODS AND SERVICE TAX

[NITIN DESAI]

SIR,

WE ARE MANUFACTURER AND EXPORTER. WE EXPORT OUR GOODS UNDER PAYMENT OF IGST.

MY QUERY IS WHILE PREPARING INVOICE AND SHIPPING BILL ON WHICH VALUE IGST SHALL BE CALCULATED, IT IS ON FOB VALUE OR CFR/CFI VALUE.

FOR SUCH IGST WE HAVE TO CLAIM REFUND ON EXPORT UNDER GSTR-1. IN OTHER WORD HOW CUSTOM DEPARTMENT VERIFY OUR TAXABLE VALUE ON WHICH WE HAVE DEBITED IGST I.E. ON FOB OR CFR OR CFI.

THANKS.

N R DESAI

[KASTURI SETHI]

Whatever amount of IGST you pay on export of goods you will get refund or rebate.

[Rajagopalan Ranganathan]

Sir,

According to Section 20 of IGST Act, 2017 provisions of CGST Act, 2017 regarding time and value of supply are made applicable to IGST Act, 2017.

According to Section 15 (1) of CGST Act. 2017 the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. Therefore the amount charged by you for supply of goods or services provided by you will be the transaction value It may be FOB value or CFR/CFI value according to the terms and conditions of the supply agreed between you and your foreign customer.

[Himansu Sekhar]

What you declare in the invoice subject to sec 15 is the transaction value, igst will be paid on it. The references of the invoice in the shipping bill will enable you to take the refund. Fob value is different.

[KASTURI SETHI]

Thanks to both experts for comprehensive replies quoting Section.

AI Summary

IGST on Exports: Calculate Based on Transaction Value per Section 15 of CGST Act, 2017; FOB or CFR/CFI Applies. A manufacturer and exporter inquired about the calculation of Integrated Goods and Services Tax (IGST) on exports, specifically whether it should be based on FOB or CFR/CFI value. The responses clarified that IGST should be calculated on the transaction value as per Section 15 of the CGST Act, 2017, which could be either FOB or CFR/CFI, depending on the agreed terms with the foreign customer. The exporter can claim a refund for IGST paid on exports under GSTR-1, and the invoice details in the shipping bill will facilitate the refund process.