TaxTMI 
TaxTMI 
Sale to Nepal and Bhutan is taxable or it will be considered as zero rated supply if payment has been realized in Indian currency .
TAXABILITY OF EXPORT TO NEPAL
12 Feb 2018 
6 Replies 
42688 Views Asked by
Export of goods to Nepal and Bhutan zero rated under GST; export of services depends on foreign exchange receipt rules.
Exports of goods to Nepal and Bhutan qualify as zero rated supplies under GST and may be covered by LUT acceptance regardless of payment in Indian rupees if compliant with RBI guidelines and Circular guidance; supplies of services historically required receipt in convertible foreign exchange but subsequent FAQs and notification amendments adjusted that requirement, and practitioners must attend to procedural particulars such as accurate entries on Bills of Exports to avoid refund denials. (AI Summary)
Exports of goods to Nepal and Bhutan qualify as zero rated supplies under GST and may be covered by LUT acceptance regardless of payment in Indian rupees if compliant with RBI guidelines and Circular guidance; supplies of services historically required receipt in convertible foreign exchange but subsequent FAQs and notification amendments adjusted that requirement, and practitioners must attend to procedural particulars such as accurate entries on Bills of Exports to avoid refund denials. (AI Summary)