Export of Service

[Kaustubh Karandikar]

XYZ exporting the goods without payment of GST under LUT. Testing is carried out on these goods before export. Two separate invoices are prepared, one for export of goods and another for Testing charges recovered from the foreign buyer in relation to goods exported to them and GST not paid on it testing charges recovered. Is GST required to be paid on testing charges recovered? If yes, under which provisions?

[Ganeshan Kalyani]

Export of service. No GST. In my view.

AI Summary

Export of service: testing charges recovered from foreign buyer for goods exported under LUT are not subject to GST. The query asks whether GST applies to testing charges separately invoiced to a foreign buyer when goods are exported under LUT. The advisor's view: the testing charges constitute an export of service and are not subject to GST.