Freight and Insurance on Exports

[Kaustubh Karandikar]

XYZ supplying goods for export on payment of GST and then claiming refund of the GST paid. XYZ also recovering Freight and Insurance from the foreign customer. Is XYZ required to show such freight and insurance in the Tax Invoice and charge GST on it?

AI Summary

XYZ's GST on Export Freight & Insurance: Include in Invoice if IGST Applied; LUT Exports Consider FOB Only. A company, XYZ, is exporting goods and charging GST, subsequently claiming a refund. They also recover freight and insurance costs from foreign customers and inquire whether these should be included in the tax invoice and subject to GST. A respondent confirms that freight and insurance should be included in the value of supply and GST should be charged on these components if IGST is applied. However, if exports are under LUT and ITC refunds are claimed, an internal circular considers only the FOB value as zero-rated supply turnover. Another participant expresses gratitude for the information shared.