Imported old machinery now sell thtough export

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kailash garg (Querist)
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13 October 2017 dear all,

we had purcahse (Import) one machinery in 2012 paid CVD & Also credit of CVD Taken in Excise books.

Now we are sell the same machine (Export) to third party

please example how we will make invoice and what we charged GST or Excise
please explain.

kaialsh

kailash garg

kailash garg (Querist)
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16 October 2017 PLEASE REPLY ..................................................................................................................................................................................................................................

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 July 2024 When you are selling a machinery that was previously imported (and you paid CVD - Countervailing Duty) and for which you have taken credit of CVD in your excise books, and now you are exporting it, here’s how you should handle the invoicing and taxation:

### Invoicing and Tax Treatment:

1. **Invoice Preparation**:
- **Invoice Format**: Prepare a commercial invoice as per standard business practices. Include all necessary details such as your company's and the buyer's details, description of the machinery, quantity, price, terms of sale (Incoterms), and any other relevant information.
- **GST or Excise**: Since this is an export transaction, GST does not apply. Excise duty has been subsumed into GST and is not applicable separately.

2. **Tax Treatment**:
- **Export of Goods**: When you export goods, it is considered a zero-rated supply under GST. This means:
- No GST is charged on exports.
- You can claim a refund of any input tax credits (such as CVD credit) accumulated on inputs and input services used to manufacture or procure the exported goods.

3. **Documentation**:
- **Shipping Bill**: Along with the commercial invoice, you need to prepare a shipping bill or bill of export. This document is required for customs clearance and to claim benefits under GST for export.
- **GST Refund**: After exporting the machinery, you can apply for a GST refund using the GST RFD-01 form on the GST portal. Submit necessary documents including the shipping bill, commercial invoice, and proof of payment of IGST (if applicable).

### Example Invoice Structure:

```
Commercial Invoice
-------------------

Invoice Number: [Your Invoice Number]
Date: [Invoice Date]

Seller: [Your Company Name and Address]
Buyer: [Buyer's Company Name and Address]

Description of Goods: [Detailed description of the machinery being exported]
HSN Code: [HSN Code of the machinery, if applicable]

Quantity: [Number of units of machinery]
Unit Price: [Price per unit in the currency of transaction]

Total Amount: [Total invoice amount in the currency of transaction]

Terms of Sale: [Incoterms - specify the agreed-upon terms of delivery]

GST: Zero-rated supply (No GST applicable)

Declaration: We declare that this invoice shows the actual price of the goods described above and that all particulars are true and correct.

Signature: [Signature of authorized person]
```

### Conclusion:

When exporting machinery that was previously imported, ensure compliance with GST regulations by preparing a proper commercial invoice and shipping bill. Remember, for exports, GST is not applicable, and you can claim a refund of any input tax credits (like CVD credit) associated with the exported goods. If you have specific questions or need further guidance, consulting with a GST expert or customs advisor would be beneficial to ensure smooth compliance and refund processing.

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