GST rate on feed Supplement to be exported under IGST

[Navid Mukadam]

Dear team

we are exporters of veterinary products and as of 8th oct, 2024 Rule 96 (10) was removed, which was restraining exporters to claim refund for IGST paid so we have now shifted to raising of invoices as exports under payment of IGST. we are required to charge Freight & insurance as per the shipment and since we are not into freight business then tax rate applicable on principal supply shall be applicable on Freight & Insurance while raising Tax invoice under GST (according to composite supply definition)

my concern is we have certain products which are feed supplement and as per HSN code under GST which is 2309, tax rate on such invoice is Nil and consequently there is no the need of charging GST on Freight & Insurance (if we go by composite supply defn). Only exchange rate should be taken into account while booking invoice in system.

kindly clarify.

interpretaion from experts will be appreciated

AI Summary

Exporter Seeks Clarity on GST for Freight & Insurance on Exempt Feed Supplements; Export Under LUT for Refunds. An exporter of veterinary products seeks clarification on GST implications for exporting feed supplements, which are exempt from GST under HSN code 2309. With the removal of Rule 96 (10), the exporter now raises invoices under IGST for exports. The concern is whether GST should be charged on freight and insurance when the main product is exempt. Responses indicate that no GST applies to freight and insurance for exempt products, and exports should be done under LUT to claim refunds. The commercial invoice can exclude IGST, while the tax invoice should mention it.