Igst on cif or fob value

[satbir singhwahi]

sir

On export of garments ,igst charged on cif value,but custom officer objecting to charge on fob value.pls guide.

[KASTURI SETHI]

When rebate is to be sanctioned in cash on FOB value and balance amount is sanctioned and credited into Credit Account, there should be no objection on CIF value. However, it is pertinent to mention that IGST on export ocean freight has been removed vide Notification no.2/18-IGST (Rate) dated 25.1.18.

AI Summary

IGST on export valuation: raise FOB cash rebate with balance in credit account to address customs CIF objections.
Where export rebate is sanctioned in cash on the FOB value and the balance sanctioned and credited into the exporter's credit account, charging IGST on CIF value should not be objected to; IGST on export ocean freight has been removed by notification, altering freight treatment in export tax computation.