Invoicing in Case of Export

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Quick Summary

When invoicing for exports, such as selling a laptop to Dubai, you have a couple of options. You can either pay the full IGST and then apply for a refund, or you can export the goods without charging tax. It is generally recommended to obtain a Letter of Undertaking (LUT) before exporting, which allows you to invoice without paying IGST upfront. While exporting with IGST payment and claiming a refund is possible, it can lead to delays in receiving your money back.

SUDHEEP M

SUDHEEP M (Querist)

24 January 2022 Sir,

I am normally a domestic supplier holding IE code. Now I want sold laptop to a concern in abroad ( say for example in Dubai). Then I want to know how to invoice the same?. Whether I have to collect full tax as IGST in the bill and apply for refund or whether possible to invoice goods without tax?.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 January 2022 No need to collect igst in the bill. Mention in the export invoice as export with igst payment.
Pay igst and claim refund.

See the link for export invoice.

https://quickbooks.intuit.com/in/resources/gst-center/export-invoice-under-gst/#:~:text=Export%20by%20Paying%20IGST%20and%20Claiming%20Tax%20Refund%20Later&text=Since%20exports%20are%20zero%20rated,credit%20on%20goods%20and%20services

CA Altamush Zafar

CA Altamush Zafar (Expert)

25 January 2022 Better take LUT and export without tax if it is a single transaction. If it is continuous transaction then you can take any method which suits you i.e export with payment of tax or export without payment of tax under LUT

R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)

25 January 2022 As explained by Mr. Zafar, It is better to file the letter of undertaking(LUT) before doing the export and do the export without payment IGST. If you do the export with payment and claim the refund thereafter, it will take time to get the refund back.

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