Carbon Credit GST

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This discussion clarifies how to manage Goods and Services Tax (GST) liability for carbon credits, particularly when the credits are provided to a foreign intermediary. The sale proceeds are treated as income. It's confirmed that this scenario likely falls under export, making it zero-rated for GST purposes. Filing a Letter of Undertaking (LUT) is recommended in such cases.

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(Querist)
06 April 2023 How to discharge GST liability on carbon credit.
The same is provided to foreign entity who is acting as intermidiary.
The sale proceeds are booked as income in our books.
How to disclose the same in GST return.
Any LUT should be filed
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
07 April 2023 It will fall under export in case it's proceeds received in foreign currency for which GST is zero rated.
LUT should be filed
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Anu Elizabeth Shaju

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Anu Elizabeth Shaju (Querist)
27 April 2023 Thank you so much sir. That was really helpful
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