We want to Export Goods from India to Bangaladesh which Invoice Value Rs. 590300.00(INR)(excluding GST) for the month of Sep,17
For this purpose Bangladesh Party open LC for Rs. 5,90,300.00 against our PROFORMA INVOICE, But sir we have not Charge any IGST for our Proforma Invoice.
But we Found in Internet that if Party LTU/Bond issue or If Exempted Good then IGST not Charge otherwise IGST Charge.
But Party said against LC not any IGST Charge
Please Clarify this
Why should foreign client pay tax chargeable iin India.
Either you pay IGST 18% or whatever rate applicable on your product and export mentioning in your Invoice "Supply meant for export on payment of IGST". This IGST amount will be refunded to your account after EGM is filed and verified by customs department.
OR
You get Bond or LUT from your regional GST commissionerate and Prepare invoice mentioning "SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST" or "SUPPLY MEANT FOR EXPORT UNDER LUT WITHOUT PAYMENT OF IGST" as the case maybe.
CAclubindia
