Documentation Charges

[Kaustubh Karandikar]

XYZ (Manufacturer) is exporting goods under LUT to a customer in Egypt. For releasing the documents against exports made, they need to take a certificate from Egypt Embassy situated in India. XYZ is paying to Egypt Embassy for such certificate and the amount paid is recovered from the customer in Egypt in foreign currency by issuing a separate Tax Invoice for supply of service under the head ‘Documentation Charges’. Is XYZ required to pay GST on the amount recovered?

AI Summary

GST Not Applicable on Documentation Charges for Exporting Goods Under LUT as Integral to Export Process XYZ, a manufacturer exporting goods to a customer in Egypt under a Letter of Undertaking (LUT), requires a certificate from the Egyptian Embassy in India. The cost for this certificate is recovered from the Egyptian customer in foreign currency through a separate tax invoice labeled as 'Documentation Charges.' The query addressed whether GST applies to this recovered amount. The response indicated that GST is not applicable as the documentation charges are integral to exporting goods to a foreign territory.