TAXABILITY OF EXPORT TO NEPAL

[ROHIT GOEL]

Sale to Nepal and Bhutan is taxable or it will be considered as zero rated supply if payment has been realized in Indian currency .

AI Summary

Exports to Nepal are zero-rated under GST; Bhutan exports subject to IGST. Follow RBI guidelines for INR payments. The forum discusses the taxability of exports to Nepal and Bhutan under the Goods and Services Tax (GST) regime. It is clarified that exports to Nepal are zero-rated, while exports to Bhutan are subject to Integrated GST (IGST). Concerns are raised about payments realized in Indian Rupees, with references to relevant circulars and notifications indicating that exports to these countries can still be zero-rated if they comply with Reserve Bank of India guidelines. The discussion also highlights the importance of correctly completing export documentation to avoid issues with GST refunds.