Is GST Payable on difference between FOB value and CIF Value of Exports

[umeshkumar jhawar]

Dear Experts

Our GST Audit has been condutected and in as per one of para officer has asked to pay GST on difference between FOB value and CIF Value of Exports.

We hvae booked Export in our books of Accounts at CIF value say Rs. 100000.00 and its FOB value as per ICEgate is Rs. 85000.00 , here officer is asking to pay GST on Rs. 15000.00 as same is not under Export giving reference to Refund Circular as issued by department.

AI Summary

Export valuation: GST not payable on CIF FOB difference as CIF constitutes the export consideration.
The experts conclude there is no statutory basis under GST or Customs law to tax the difference between FOB and CIF export values; CIF constitutes the exporter's price to the destination and is part of export consideration, and any audit objection must be supported by a specific circular or notice to be sustainable.