IGST ON EXPORTS

This query is : Resolved

V.S. Balasubramanian (Querist)
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10 January 2020 Hi All

One of my overseas client is not ready to pay IGST on the services done in India (other than Freight). He says you get a refund from Government.

I am copying the message received from my customer's GST consultant (India).

1. GST has to be charged on local services up to the port of export.
Though Foreign customer need not pay the GST, GST has to be still charged in the invoice and adjusted against the GST Input credit available on input services / to be paid in cash.

2. This GST output can be claimed as GST refund on export of services with payment of tax on producing of FIRC copies (Foreign inward Remittance Certificate) provided the cash is received in convertible foreign currency within one year of the invoice date. The timeline for GST refund by the department is 60 days provided all the documents are correct.

EX:
Local Service Charges billed to the customer = 100
GST on local services @ 18% = 18
Export Ocean Freight on Export = 2000
GST on Export Ocean Freight = 0 (Exempt)
Total Invoice value Payable by the customer = 2100

GST refund on export of service with payment of tax = 18
Net loss for 20CUBE INDIA = 0

Please GST experts solve the above whether the consultant is correct.

How we can get the refund

Regds
Bala