Export Invoice Under GST - Exchange rate

We are exporters of Spices from Tuticorin Port.

We do exports under LUT

When goods are removed from my go down in Trivandrum  to be transported to Tuticorin we generate e invoice and e way bill  with the customs rate of exchange.

Once the goods reach Tuticorin the samples are drawn by Spices Board and tested for quality. The will be available within a week..

After this the goods are taken to port for export  but at the time of let export the rate of exchange sometimes Changes.

At the time of claiming refund /filing GSTR 1  there is a difference in the e invoice value and the value as shown in Shipping Bill and hence GST system shows error. As there is no provision to amend e invoice we are helpless

Kindly give your suggestions on how to resolve this issue

Sajjad Sait

 

 

 

Replies (1)

Hi Sajjad,

Your concern about exchange rate differences between e-invoice and shipping bill for exports under LUT is quite common. Here’s how you can handle it:


🔍 Issue Recap:

  • You generate e-invoice and e-way bill based on exchange rate at goods removal (Trivandrum).

  • Actual export happens later (Tuticorin port) with a different exchange rate in the shipping bill.

  • This causes mismatch between invoice value and shipping bill value.

  • GST portal flags errors because of the mismatch.

  • No direct way to amend e-invoice once generated.


✅ Suggested Solutions:

1. Use Provisional Exchange Rate

  • Generate the e-invoice using a provisional exchange rate expected at the time of export.

  • If differences arise, adjust in your accounting records rather than changing the e-invoice.

2. Issue Debit/Credit Notes

  • GST allows issue of credit/debit notes to adjust values post invoicing.

  • You can issue a debit or credit note reflecting exchange rate difference.

  • These will adjust the taxable value in GST returns without amending the original invoice.

3. Use Shipping Bill Value as Reference

  • While filing GSTR-1 or refund claims, refer to the shipping bill value as primary.

  • Maintain reconciliation statements showing invoice value vs shipping bill value with exchange rates.

4. File NIL Amendments

  • Some exporters generate a revised shipping bill or do necessary corrections in customs systems.

  • Keep a trail of documents supporting your position for audit.


✅ Important Notes:

  • As per GST law, the invoice value should correspond to the value declared in customs shipping bill for export.

  • However, practical delays cause differences.

  • Issuing debit/credit notes is the accepted mechanism to manage such exchange fluctuations.


Summary Table

Problem Suggested Action
Exchange rate mismatch in e-invoice & shipping bill Issue debit/credit note for difference
No provision to amend e-invoice Adjust through debit/credit notes
GST system error on mismatch Maintain reconciliation & explanations

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