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

Export of services IGST treatment: charging tax to overseas buyers can bar refund unless the tax is returned to avoid unjust enrichment.
Export of services may be on payment of IGST or without payment under bond/LUT. If IGST is charged and collected from the overseas buyer, refund claims risk rejection for unjust enrichment unless the tax portion is refunded to the buyer. Options are to export under bond/LUT, pay IGST and claim refund where Input Tax Credit suffices, or refund the excess tax collected to the client and then file for refund, with clear invoice breakups maintained.