GST on CIF amount charged in export invoice

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This discussion clarifies that GST is not payable on CIF charges when included in an export invoice under a Letter of Undertaking (LUT) without IGST payment. The CIF amount is considered part of the taxable value for goods, making it a composite supply. For GSTR1 reporting, export of goods and CIF charges should be combined and reported under Table 6A Exports as a single amount with the same HSN code.

Rajesh

Rajesh (Querist)

11 January 2022 1) Export is under Letter of Undertaking without payment of IGST
2) Export invoice includes:
a) taxable value of goods(separately)
b) CIF amount (charged and shown separately in export invoice)

Query:
I read somewhere that in case of CIF export, amount of CIF charges forms part of value of goods and export of goods becomes composite supply.
As per my understanding, (1) as export is under LUT (without payment of IGST) and (2) CIF charges (though charged and shown separately in export invoice) form part of taxable value (as it becomes composite supply), GST is not payable on CIF charges.

Kindly advise whether my understanding is correct. If it is not, kindly guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 January 2022 Yes, your understanding is right no GST payable.

Rajesh

Rajesh (Querist)

11 January 2022 How shall I show that in GSTR1?
Will HSN code be same for both?
or
Will it be different for both?
Shall I report export of goods in Table 6A Exports along with CIF charges?
or
Shall I report export of goods in Table 6A Exports and CIF charges in Table 8D as exempted inter-state supply to unregistered persons?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 January 2022 Report export of goods in Table 6A Exports along with CIF charge. No separate HSN. Report single amount.

Rajesh

Rajesh (Querist)

11 January 2022 Many Thanks Sir! Your replies are always very helpful!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 January 2022 You are welcome.......

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