Export of services

[Archna Gupta]

Dear Expert,

If we raise invoice to our foreign client for providing services and we raise invoice for 'Export of services on payment of IGST'. Suppose the invoice is raised for 100 USD and charged IGST @ 18% i.e., total invoice amount comes to 118 USD.

1. Whether the invoice for 100 USD or 118 USD will be sent to the client?

2. whether we'll receive 118 USD or 100 USD from our client? What I understand in this case that we'll receive 100 USD from client and deposit IGST of 18 USD from our own pocket and later on will apply for refund of 18 USD.

AI Summary

Clarification on GST Invoicing for Export Services: Invoice $118 with IGST; Commercial Invoice $100 Without IGST. A participant raised a query regarding invoicing for export services under GST, specifically whether to invoice a foreign client for $100 or $118, including IGST. Experts advised that the GST invoice should reflect $118, but the commercial invoice should be $100, as taxes are not exported. The client typically pays $100, and the exporter pays IGST from their pocket, claiming a refund later if they have excess ITC. If the client pays $118, the exporter may need to refund the excess $18 to avoid unjust enrichment. Alternative options include exporting under bond/LUT without IGST payment.