Sir I m exporting goods with Gst on CIF basis and charging Freight and insurance in invoice. So what is the Taxable Amount for levy of Gst ?
Should I levy Gst on freight and Insurance along with cost (FOB).
Plz share if there is any ruling about it.
Menu
FREIGHT RECEIVED ON EXPORT
Replies (7)
Quick Summary
As per IGST Act you Can export the goods by two methods
1) pay IGST and claim refund
2) without payment of IGST , however you have to submit Letter of Under taking ( LUT ) subject to conditions .
So I think second method is useful , You have to submit LUT on GSTN portal , from starting of new F.Y 1-4-2023 , just check which method is useful and apply.
1) pay IGST and claim refund
2) without payment of IGST , however you have to submit Letter of Under taking ( LUT ) subject to conditions .
So I think second method is useful , You have to submit LUT on GSTN portal , from starting of new F.Y 1-4-2023 , just check which method is useful and apply.
Dear Ishan, please contact on raj @ rcdco.in since this requires to understand your modus operandi.
Taxable value will include freight and incidental expenses.
Therefore the whole amount charged (CIF) will become taxable value.
Therefore the whole amount charged (CIF) will become taxable value.
Freight received on export
LUT is valid for one year from 1st April to 31 St March , So if you are Exporting in near future every now and then , So I think LUT is better option not necessary to pay IGST every time and claim refund, Compliance is less . after all it's your choice.
In case of export of Goods on CIF basis, the freight and insurance are the integral part of the value of goods whether price is charged inclusive of these components or these components are shown separately on the Export Invoice. In both the cases, where you decide to export on payment of GST, you are requited to pay GST on Gross value though the export benefits shall be restricted to FOB value realized.
Hope the answer is helpful.
The Goods and Services Tax (GST) laws in most countries require that freight and insurance charges be included in the value of goods for the purpose of calculating GST. This means that if the cost of goods sold (FOB) includes freight and insurance charges, then GST will be levied on the entire FOB value, including the freight and insurance charges.
Recent Topics :
- UDIN generation
- Reply plz guys
- Tax Deduction and Collection Account Number
- Where can students practice XAT PYQs effectively?
- Gst on Guest house 5% without ITC
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
- AGM Defective Notice
- IMS Rejection of Sales and Sales return
Related Topics :
CAclubindia
