Export Services

[CA.Mohammed Lakkadsha]

If a Registered GST supplier has issued a Invoice of Export of services on provision of services under LUT (Without payment of Taxes). Subsequently the exporter is not able to recover the Invoice value from the Recipient due to some dispute (deficiency of services) , The credit note is pending to issued till the date of filing of annual return. Whether such supplies can be treated as export sales to be reported under 5A of table two or such supplies will become taxable since one of condition of receipt of Invoice value in Forex has not been fulfilled.

AI Summary

GST Export Services Under LUT: Reporting Guidelines for Non-Received Invoice Value and Section 5A Requirements Explained A registered GST supplier issued an invoice for export services under a Letter of Undertaking (LUT) without payment of taxes. Due to a dispute over service deficiencies, the exporter could not recover the invoice value from the recipient, and a credit note remains pending. The query concerns whether these supplies should be reported as export sales under 5A of table two or become taxable due to non-receipt of invoice value in foreign exchange. The response clarifies that the supplies can be treated as export sales, as export proceeds and proof can be provided later, fulfilling the Foreign Inward Remittance Certificate (FIRC) condition subsequently.