Export of Service

[Kaustubh Karandikar]

XYZ (India) submits 'Form AI' to overseas customer along with export shipment (post shipment document).'Export Inspection Council India', this authority certifies this Form and after certification XYZ submit this Form to Export customer and charge this certification charges to customer in export invoice of goods separately. Export customer gets discount on import duty after issuing this Form. Is XYZ required to pay GST on amount of certification charges recovered from foreign buyer?

AI Summary

Export of Service: whether GST applies to certification charges billed to foreign buyer for export documentation. Whether GST is payable on certification charges invoiced to an overseas purchaser for a post shipment certificate accompanying exported goods. XYZ India secures a certified Form AI from the Export Inspection Council India, charges the certification fee separately on the export invoice, and the foreign buyer receives an import duty concession upon presentation of that Form. The operative issue is whether that certification charge is an independent supply or ancillary to the goods and the appropriate GST treatment when billed to the foreign buyer.