Value for Exports under LUT

[Kaustubh Karandikar]

XYZ supplying goods for export under LUT. In the Tax Invoice they are charging only value of the goods. While in the Commercial Invoice they are charging to the customer value of the goods + air freight charges from Mumbai Airport to foreign port. The value of tax invoice is matching with value of Shipping bill which is FOB value? Is this the correct way or in the Tax Invoice also freight is required to be shown? However, if it is shown the value of shipping bill and tax invoice will not match. Kindly guide the correct position under the law.

AI Summary

XYZ Questions Including Freight Charges in GST Tax Invoice for LUT Exports; Seeks Clarification on Invoicing Methods. XYZ is exporting goods under a Letter of Undertaking (LUT) and is questioning the correct invoicing method under GST law. In their tax invoice, they list only the value of goods, while in the commercial invoice, they include both the goods' value and air freight charges. The tax invoice value matches the Free on Board (FOB) value on the shipping bill. XYZ seeks guidance on whether freight charges should also be included in the tax invoice, noting that doing so would cause a discrepancy between the shipping bill and tax invoice values.