EXPORT CLEARANCE

[SURYAKANT MITHBAVKAR]

We have passed shipping bill and ready to clear export consignment on 30th March,2018. But Bill of lading of the same consignment is generated in month of April-18.

In above case can we book our export sales in current year i.e. 2017-18 or next financial year i.e. 2018-19.

[Rajagopalan Ranganathan]

sir,

According to Section 12 (2) of CGST Act, 2017 "the time of supply of goods shall be the earlier of the following dates, namely:-

(a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or

(b) the date on which the supplier receives the payment with respect to the supply:

Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount."

This section is made applicable to IGST Act, 2017 vide Section 20 of IGST Act, 2017. Therefore time of supply of export goods is time issue of invoice.

[Ganeshan Kalyani]

if tax invoice / commercial invoice is raised on 30th march 2018 then your sale is accounted for fy 2017-18.

[YAGAY andSUN]

The term "Sale Recongnition" will come into play.

AI Summary

Timing of Export Sales Recognition Under GST: Invoice Date Key Under Section 12(2) CGST Act 2017 A discussion on a forum revolves around the timing of recognizing export sales under the Goods and Services Tax (GST) framework. The query concerns whether export sales should be recorded in the financial year 2017-18 or 2018-19, given that the shipping bill was passed in March 2018, but the bill of lading was generated in April 2018. One respondent cites Section 12(2) of the CGST Act, 2017, indicating that the time of supply is determined by the invoice date. Another suggests that if the invoice was issued on March 30, 2018, the sale should be recorded in the 2017-18 fiscal year.