TaxTMI 
TaxTMI 
XYZ had exported equipments earlier which needs Quality Certification from a recognized agency in India. XYZ got done the technical audit and certification of the equipment before exporting the same. The charges incurred for this certification was recovered from the foreign customer.Is XYZ liable to pay GST on the amount recovered?
Export of Service
24 Sep 2019 
2 Replies 
1368 Views Asked by
Incidental expense inclusion in export value can be added to export consideration and disclosed as zero-rated supply.
Certification charges recovered from a foreign buyer for pre-export quality audit constitute incidental expenses under section 15(2)(c) and must be added to the value of the export; the amount should be accounted for (for example by issuing a debit note) and disclosed as part of the zero-rated supply. (AI Summary)
Certification charges recovered from a foreign buyer for pre-export quality audit constitute incidental expenses under section 15(2)(c) and must be added to the value of the export; the amount should be accounted for (for example by issuing a debit note) and disclosed as part of the zero-rated supply. (AI Summary)