Export of goods on payment of GST

[Kaustubh Karandikar]

In case of export of goods on payment of GST, the value recorded in the GST invoice should normally be the transaction value as determined under section 15 of the CGST Act read with the rules made thereunder.

1) Whether the value should be FOB or CIF?

2) If FOB, whether freight charges from factory to Port and from Port to foreign customer should form part of value?

3) If CIF, whether freight charges from factory to Port and from Port to foreign customer should form part of value?

AI Summary

Value for export under GST: supplier recovered freight forms part of taxable value; Customs FOB/CIF not determinative
Value for exports on payment of GST is determined under transaction-value rules of the CGST regime; freight charges recovered by the supplier are part of the taxable value, and Customs FOB/CIF labels do not alone fix the GST value since Shipping Bill values and tax invoice values may differ under different statutory schemes.