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?

[YAGAY and SUN]

Getting an Invoice validated or certificate in this connection from Egyptian Embassy, called a councilor invoice. In our view, GST is not applicable as it was part and parcel of exporting the goods into a foreign territory.

AI Summary

Export documentation charges not subject to GST when integral to export of goods under LUT.
Documentation charges paid to a foreign embassy for a certificate to facilitate exports under LUT, and recovered from the overseas buyer in foreign currency by a separate invoice, are treated as integral to the export of goods and consequently are not subject to GST.