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Clarification on export invoice in regards to gst

Jahn Das (Other) (11 Points)

01 March 2018

I export software services to the US, and get paid with bank transfer in USD to our account.

I do not purchase anything in the process, so pay no GST tax on supplies and don't claim back any input credit.

When I export the software and prepare the export invoice for the buyer in U.S. do I specify the "Taxable Rate" as 0% since exports are tax free?

Or do I have to pay 18% tax out of my pocket and then claim back the amount later?

Thank you for your help.

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5 Replies

sudip sharma (article) (734 Points)
Replied 01 March 2018

in the case of export , you have two choices either to pay no tax with bond or letter of undertaking OR pay IGST on your supply at applicable rate of tax. in both of situation you can input tax and output tax, if any paid by u, .

sudip sharma (article) (734 Points)
Replied 01 March 2018

claim for refund of input and output

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 01 March 2018

Required LUT BOND or Pay Tax and get refund.

Jahn Das (Other) (11 Points)
Replied 01 March 2018

How can I issue them an invoice for more than they pay. If they pay 1,00,000 Rs., then I have to issue them an invoice for 1,18,000 Rs with the 18% GST (and pay the tax myself)? How would their accounts balance with invoices not matching what they pay? Seems confusing to me.

Also the FIRC would only be for 1 lakh, so I will not be able to show that I received 1,18,000 which the invoice would show. So my accounts would also not match.