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

Is GST applicable on certification fees charged by XYZ for Form AI provided to foreign buyers? XYZ, an Indian company, submits a certified 'Form AI' to its overseas customers along with export shipments. This form, certified by the Export Inspection Council of India, allows the foreign customer to receive a discount on import duties. XYZ charges the certification fee separately on the export invoice. The query raised is whether XYZ is obligated to pay Goods and Services Tax (GST) on the certification charges collected from the foreign buyer.