Export Invoice with IGST

[lakush jain]

I want to export some items to Nepal. The total amount of export is 1,00,000. I do not have any LUT yet so I will include IGST in the invoice which comes out to be 18,000.
Now my total invoice amount becomes
Net – 1,00,000
IGST – 18,000
Grand Total = 1,18,000 INR
Now the person in NEPAL will not pay this GST to me because he has nothing to do with this 18% tax which I included in the invoice. What should I show in the invoice to credit this 18,000 INR because the person in NEPAL will only pay me 1,00,000 even though the invoice amount is 1,18,000.
Please tell me how to show 18,000 pre-paid in the invoice for export with IGST?

Thanks,

[Ganeshan Kalyani]

In Tax invoice show the breakup of basic + tax. In commercial invoice shown total amount . Tax invoice is for GST compliance purpose and commercial invoice is for the importer.

[SHIVKUMAR SHARMA]

You can taken LUT online on the Portal of GST & Clear the Consignment Without Payment of IGST. LUT Can be submitted online within a few Minutes.

[lakush jain]

Thanks for your replies, I actually have some questions regarding both IGST and LUT

LUT takes some time and I need to send the order urgently. If I generate LUT online how will I get physical LUT proof to send with the shipment?

Do I need to pay IGST before exporting goods? If I need to pay the IGST before sending shipment then do I need to show any proof of payment? Usually I pay IGST monthly.

I read that I will need a shipping bill to claim IGST refund, if I am sending goods to NEPAL via land or some transport company, will I get the shipping bill from them or should I consider Tax invoice as my shipping bill for refund purpose?

[SHIVKUMAR SHARMA]

LUT will not takes time and If you generate LUT online you will not required physical LUT .System generate

Application Reference number which is sufficient for export of your goods.

[lakush jain]

This ARN number generated by online LUT portal, can I use just this with transport company to send my goods or do I need any other supported documents while sending my goods?

Also do I need any Import Export Code (or IC code) before sending my goods to NEPAL or to generate LUT?

[KASTURI SETHI]

For export also, Import Export Code is must.

[lakush jain]

but according to below MEMO , it says that if you have GSTIN number then IEC code is not necessary ? Going forward only GSTIN number will be used for transaction. I do have GSTIN number then do I still need to register for IEC code?

http://dgft.gov.in/Exim/2000/TN/TN17/TN0918.pdf

[KASTURI SETHI]

PAN is to be treated as IEC if the goods to be exported are fully exempted.

[KASTURI SETHI]

Pl.read PAN based GSTIN instead of PAN.

[Ganeshan Kalyani]

GSTIN is sufficient.

[Ganeshan Kalyani]

Online submission of LUT application is enough. No need to get hard copy .

[YAGAY andSUN]

ARN would be the LUT number as clarified by CBIC.

[KASTURI SETHI]

M/s. Yagay and Sun, Dear Sir, Will you please mention circular no. ? For knowledge sake.

[YAGAY andSUN]

Sure Sir,

LUT shall be deemed to be accepted on Generation of ARN, No Documents required to be physically submitted to Jurisdictional Office: CBIC

Circular No. 40/14/2018-GST dtd. 06-04-2018

In a recent circular issued by the Central Board of Indirect Taxes and Customs (CBIC), the board made clarifications on issues related to the furnishing of Bond / Letter of Undertaking (LUT) for exports. The circular clarified that a Letter of Undertaking (LUT) shall be deemed to be accepted as soon as an acknowledgement bearing the Application Reference Number, is generated online. It further clarified that no documents are required to be physically submitted to the jurisdictional office for acceptance of LUT. The Circular also stated that if an exporter’s LUT has been accepted and later if it was discovered that the exporter was ineligible to furnish a LUT in place of a bond, then the LUT will be liable for rejection and such LUT shall be deemed to have been rejected from the very beginning.

The Circular was issued upon receiving various queries from the field formations and exporters regarding a technical glitch that the LUTs submitted via online in FORM GST RFD-11 on the common portal were not visible to the jurisdictional officers of the Central Board of Indirect Taxes and Customs (CBIC) and of a few states.

 

 

[Subhash Modi]

You need IEC, PAN, GSTIN whether the export is without payment of IGST under LUT or on payment of IGST under claim of refund, You can prepare 1) commercial invoice (international format both for exports and for IGST paid or not paid under LUT details) or 2) 2 invoices (with the same number and date) one commercial and other Tax Invoice. If it is a combined commercial-cum-GST Invoice which you use essentially for customs and GSTR 3B and statement 6A purposes then to the buyer in Nepal you give the same invoice with GST related details deleted. The Invoice should have at the top the following Legend "Supply meant for export on payment of IGST or without payment of IGST under LUT (as applicable).

The transporter will have to file at the Indian border with the Indian land customs office a bill of export (like shipping bill) and incorporate IGST amount paid or not paid details with LUT file number or ARN (as available).if IGST not paid. Bill of Export must also have IEC, PAN and GSTIN details For refund of IGST or submission of proof of export if under LUT you will essentially need bill of export as refund is online through the common portal and customs at border point will transfer the claim amount electronically through PMFS route to your PMFS ready bank/branch. If instead supply is under LUT then proof of export will have to be filed manually (presently) to your jurisdiction in which case also bill of export will be required.

Export is interstate supply therefore from 01-04-2018 an e-Waybill will have to be generated for movement from the place of loading to the Indian border exit point.

AI Summary

Export under LUT permits shipment without IGST payment upon ARN generation, but bill of export and IEC/GSTIN are required. Exports to Nepal may proceed without payment of IGST by furnishing an online Letter of Undertaking (LUT) which is deemed accepted upon generation of an Application Reference Number (ARN); no physical LUT is required. Export documentation must include IEC/PAN/GSTIN, and a bill of export filed at the land customs office must record IGST payment status or LUT ARN. Tax compliance requires appropriate tax and commercial invoice handling, and proof of export via the bill of export is necessary for IGST refund or LUT-related compliance; an e-Waybill is required for internal movement to the exit point.