Services rendered to Overseas Customers

[SURYAKANT MITHBAVKAR]

We have manufacturing of Pharmaceutical machinery and exported the same. Now we have to give them paid service.

We have letter of undertaking obtaining from GST Council.

Whether we have to raise the Tax invoice without GST or charge GST.

In short can we use LUT for exemption of GST for services render to foreign customers.

If yes, what type of document to be kept for submission to jurisdiction officer/Assessment officer.

[Ganeshan Kalyani]

Export of service is exempted.

[Nash Industries I Pvt Ltd]

Dear Querist - please elaborate the question to have the clarity to reply.

Regards

S.Ramaswamy

[Kishan Barai]

Nope! you should not raise tax invoice from foreign clients. As you have done pre export compliance, so I am providing you post export compliance

Post-export compliance

Once the goods are exported, exporter shall provide following documents to the supplier and the jurisdictional tax officer of the supplier:

• Copy of shipping bill/ Bill of export (incorporating supplier’s GSTIN)
• Export General Manifest/ Export report

Important Conditions

Exporter must be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce

[Ganeshan Kalyani]

To my understanding querist want is asking tax implication on export of service.

[ANITA BHADRA]

Yes , You can use LUT for exemption of GST for Export of Services ..

Till the time FORM GST RFD-11 is available on the common portal, you may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business.

The LUT shall be furnished on your letter head , in duplicate, and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor.

Documents for LUT: Self-declaration to the effect that the conditions of LUT have been fulfilled shall be accepted unless there is specific information otherwise. That is, self declaration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of Notification No. 37/2017- Central Tax dated 4 th October, 2017. Verification, if any, may be done on post-facto basis.

Regards

CA Anita Bhadra

[VIKRAM MUNSHI]

Hello Anita,

What does one do if there are 3 transactions without LUT?

Cheers

Vikram

AI Summary

Zero-rated export of services: use LUT to claim GST exemption, furnish prescribed refund form and required declarations. Export of service is zero-rated and may be supplied without charging GST if the supplier furnishes a valid Letter of Undertaking (LUT) or follows the prescribed refund procedure. The LUT must be on company letterhead, executed by an authorised signatory and submitted to the jurisdictional officer; a self-declaration that LUT conditions are met is acceptable with verification possible on a post-facto basis. Suppliers should not raise a tax invoice charging GST to foreign clients where zero-rating under LUT applies.