Is igst to be shown on invoice for export of services
This query is : Resolved
26 September 2017
What is the format of invoice for export of services if IGST is paid by the company?
Since IGST is to be claim back as refund, should we charge IGST for export to the foreign company?
Please reply.
Thanks
Since IGST is to be claim back as refund, should we charge IGST for export to the foreign company?
Please reply.
Thanks
26 September 2017
No IGST need to be charged in the invoice for export to the foreign company.
04 October 2017
Thanks. But what We have to show in Export Invoice than?
07 October 2017
Taxable value and Tax amount should be mentioned against each item in the Shipping bill for processing the refund amount.
As per rule 96A of the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.
As per rule 96A of the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.
09 October 2017
In this case service is exported, so what will be the format of Invoice and What will be the amount payable by the foreign company? Is foreign company needs to pay amount of GST if any shown in invoice?
Message likes :
1 times
01 August 2024
For export of services, the treatment of IGST and the format of the invoice have specific requirements under GST laws. Here’s a detailed breakdown:
### 1. **IGST on Export of Services:**
- **Zero-Rated Supply:** Under GST, export of services is treated as a **zero-rated supply**. This means that while the export of services is subject to IGST, the effective tax rate is zero percent.
- **IGST Refund:** Although IGST is charged on the invoice, it is claimed as a refund later. Exporters can claim a refund of the IGST paid on their input supplies, and no tax is effectively payable by the foreign company.
### 2. **Invoice Format for Export of Services:**
- **Invoice Details:** The invoice for the export of services should be prepared in accordance with the general GST invoice format, with specific mention of the export and zero-rated supply.
#### **Required Details on the Invoice:**
1. **Supplier and Recipient Information:**
- Name, address, and GSTIN of the supplier.
- Name and address of the recipient (foreign company), and country.
2. **Invoice Number and Date:**
- Sequential invoice number and date of issue.
3. **Description of Services:**
- Detailed description of the services provided.
4. **HSN Code:**
- HSN code for the service (if applicable).
5. **Value of Supply:**
- Value of the services provided.
6. **IGST Rate:**
- Mention **“IGST”** with a rate of **0%**.
7. **Total Amount:**
- Total invoice amount in foreign currency and INR.
8. **Export Mention:**
- Clearly state that the supply is an export and is subject to **“zero-rated supply”** under Section 16 of the IGST Act.
9. **Export Invoice Specifics:**
- Mention that the invoice is issued for export of services under IGST and the recipient is located outside India.
#### **Example Format:**
```
Invoice No: [Sequential Number]
Date: [Date]
Supplier:
Name: [Your Company Name]
Address: [Your Address]
GSTIN: [Your GSTIN]
Recipient:
Name: [Foreign Company Name]
Address: [Foreign Address]
Country: [Country]
Description of Services:
- [Detailed description of the services]
HSN Code: [Applicable HSN Code]
Value of Supply:
- Value of Services: [Amount in Foreign Currency]
- Equivalent Value in INR: [Amount in INR]
IGST: 0%
Total Amount: [Amount in Foreign Currency] / [Amount in INR]
Note: This is an export of services under zero-rated supply as per Section 16 of the IGST Act. IGST at the rate of 0% is applicable. Refund of the IGST paid on inputs may be claimed.
[Signature]
[Authorized Signatory]
```
### 3. **Payment by Foreign Company:**
- **Amount Payable:** The foreign company should pay the amount shown on the invoice, which will be the value of services in foreign currency or INR as per the invoice. They do not pay IGST as it is zero-rated.
- **GST Payment:** The foreign company is not required to pay IGST, as the supply is zero-rated.
### 4. **Refund Process:**
- **Claiming Refund:** You need to file a refund claim for the IGST paid on inputs used to provide the exported services. The refund process involves filing a refund application with the GST authorities and complying with the relevant rules and documentation requirements.
### Summary:
- **IGST on export of services is zero-rated.**
- **Invoice should mention IGST at 0% and state that the supply is zero-rated.**
- **Foreign company does not need to pay IGST.**
- **You can claim a refund of IGST paid on inputs used for the export of services.**
Ensure to maintain proper documentation and follow the procedures as outlined by the GST authorities for claiming refunds and compliance.
### 1. **IGST on Export of Services:**
- **Zero-Rated Supply:** Under GST, export of services is treated as a **zero-rated supply**. This means that while the export of services is subject to IGST, the effective tax rate is zero percent.
- **IGST Refund:** Although IGST is charged on the invoice, it is claimed as a refund later. Exporters can claim a refund of the IGST paid on their input supplies, and no tax is effectively payable by the foreign company.
### 2. **Invoice Format for Export of Services:**
- **Invoice Details:** The invoice for the export of services should be prepared in accordance with the general GST invoice format, with specific mention of the export and zero-rated supply.
#### **Required Details on the Invoice:**
1. **Supplier and Recipient Information:**
- Name, address, and GSTIN of the supplier.
- Name and address of the recipient (foreign company), and country.
2. **Invoice Number and Date:**
- Sequential invoice number and date of issue.
3. **Description of Services:**
- Detailed description of the services provided.
4. **HSN Code:**
- HSN code for the service (if applicable).
5. **Value of Supply:**
- Value of the services provided.
6. **IGST Rate:**
- Mention **“IGST”** with a rate of **0%**.
7. **Total Amount:**
- Total invoice amount in foreign currency and INR.
8. **Export Mention:**
- Clearly state that the supply is an export and is subject to **“zero-rated supply”** under Section 16 of the IGST Act.
9. **Export Invoice Specifics:**
- Mention that the invoice is issued for export of services under IGST and the recipient is located outside India.
#### **Example Format:**
```
Invoice No: [Sequential Number]
Date: [Date]
Supplier:
Name: [Your Company Name]
Address: [Your Address]
GSTIN: [Your GSTIN]
Recipient:
Name: [Foreign Company Name]
Address: [Foreign Address]
Country: [Country]
Description of Services:
- [Detailed description of the services]
HSN Code: [Applicable HSN Code]
Value of Supply:
- Value of Services: [Amount in Foreign Currency]
- Equivalent Value in INR: [Amount in INR]
IGST: 0%
Total Amount: [Amount in Foreign Currency] / [Amount in INR]
Note: This is an export of services under zero-rated supply as per Section 16 of the IGST Act. IGST at the rate of 0% is applicable. Refund of the IGST paid on inputs may be claimed.
[Signature]
[Authorized Signatory]
```
### 3. **Payment by Foreign Company:**
- **Amount Payable:** The foreign company should pay the amount shown on the invoice, which will be the value of services in foreign currency or INR as per the invoice. They do not pay IGST as it is zero-rated.
- **GST Payment:** The foreign company is not required to pay IGST, as the supply is zero-rated.
### 4. **Refund Process:**
- **Claiming Refund:** You need to file a refund claim for the IGST paid on inputs used to provide the exported services. The refund process involves filing a refund application with the GST authorities and complying with the relevant rules and documentation requirements.
### Summary:
- **IGST on export of services is zero-rated.**
- **Invoice should mention IGST at 0% and state that the supply is zero-rated.**
- **Foreign company does not need to pay IGST.**
- **You can claim a refund of IGST paid on inputs used for the export of services.**
Ensure to maintain proper documentation and follow the procedures as outlined by the GST authorities for claiming refunds and compliance.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Original return filed under Old scheme, can we file updated return under old scheme?
- REGARDING AVAILABILITY OF ITC UNDER SECTION 17(5) FOR TRANSPORTATION OF PASSENGER SERVICES
- Payment of Stamp Duty and registartion of documents
- A Durga Puja Committee to be treated as which person under Income Tax
- ITR Type to be used for the FY 2024-25
- RECEIPT OF TRAINING FEES FROM FOREIGN STUDENT
- Capital Gain on Equity ETF without STT
- GST-Marketing Research Organization
- WRONG BILL ISSUED BY SUPPLIER
- Gst invoice for sale of old car
- ITR after the demise of an individual
- RCM Paid on Rented Commercial Property by Restaurant
- Last 3 years GSTR 4 not filed compulsary
- Issue in IMS (Invoice Management System)
- Credit Note Rejection in IMS and GSTR 3B locking
- How to present in Balance sheet as per scheduled III and under which head
- MCA filings and Compliance Practice
- Advance paid and received against Property plant and Equipment
- How to present in balance sheet as per scheduled III of company Act
- Amendmend in B2CS to B2B
Trending Online Classes
-
Live Course on EPF & ESI Act - Mastercourse(With Govt Certificate)
Mr.Balamurugan Ranganathan16 June 2025
CAclubindia
