bond for export under rule 96A

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You mean to say in that case we have to pay IGST from our own pockets.

 

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You mean to say in that case we have to pay IGST from our own pockets.

 

Originally posted by : PRABIR PAUL
You mean to say in that case we have to pay IGST from our own pockets.

 

Suppose you are a merchant exporter:-

1) You Purchase goods worth Rs. 1,00,000/- + 18% IGST (18,000/-) = 1,18,000/-

2) Rs.18,000/- is your ITC on Purchase that you will get in monthly return

3) Export  the above goods  for Rs.1,10,000/- against 18% IGST (Rs..19,800/-) (show both figures in Invoice)

4) now In monthly return, you have to Pay Export IGST Rs.19,800, but you will claim No.2 ITC 18,000 & so you will be paying only diff Rs.1800/-.extraout of pocket.

5) Also, in monthly return, you will claim the full refund of Rs.19,800/- shown in Export Invoice while providing all relevant data specified by the law.

 

You have to pay that amount of IGST for Export under reverse charge mechanism.
format of bank guarantee


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