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Igst invoicing to foreign client, right or wrong?

IGST 181 views 3 replies

Hi

My firm is struggling to get clarity on IGST invoices to foreign based clients?

My client is based in USA and payment currency is in dollars automatically converted & get credited in INR to my firm’s bank account. My firm is based in India.

Now

1) Is it correct to send my client IGST included invoices?

2) If they pay that IGST included amount and my company CA files IGST then later who can claim that amount my firm or my client?

3) Technically my Client is paying IGST so even if export of goods/services is zero and still he is paying then he should get refund, Isnt it? in that case what my client needs to do?

Thanks in anticipation,
Mayur

Replies (3)
1. No, you have to mention & charge the IGST if LUT is not filed

2. client in forgien cannot claim, yes you can get the refund of IGST (export sale)

3. If Your client is paying you the IGST, then You are not liable to claim refund for the same ,... But as the refund claim in Export is Auto Credit , so you are suppose to refund the IGST amount to your client

Its better in your case to file LUT online on portal , as you wont have to charge IGST if Lut is being filed

What if I dont return that amount to client?

I am not looking to con my client but there are previous transactions happened where we have not returned that amount back to client

IF YOU GOT THE REFUND ON THAT EARLIER AMOUNT THEN FILE DRC03 ON PORTAL & DEPOSIT THE SAME


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