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

Transaction value determines IGST on exports, payable on the invoice value (FOB or CFR/CIF) and refundable. IGST on exports is payable on the transaction value declared in the supplier's invoice, which is the price actually paid or payable and may be FOB or CFR/CIF according to the contract. CGST valuation principles apply to IGST, and referencing the invoice in the shipping bill enables refund claims of IGST paid.