Clarification on export invoice in regards to gst

Import / Export 172 views 5 replies

Jahn Das

Other

11 Points Joined 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.

Replies (5)

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 Joined May 2015

claim for refund of input and output

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Required LUT BOND or Pay Tax and get refund.

Jahn Das

Other

11 Points Joined 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.