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

GST Not Applicable on Testing Charges for Exports Under LUT Without GST Payment: Considered Export of Service A query was raised regarding the applicability of GST on testing charges recovered from a foreign buyer for goods exported under a Letter of Undertaking (LUT) without GST payment. Two separate invoices were issued: one for the goods and another for the testing charges. The question was whether GST is required on the testing charges. The response provided indicated that, in the opinion of the respondent, GST is not applicable to the testing charges as they are considered an export of service.