Igst invoicing to foreign client, right or wrong?

194 views 3 replies

Mayur Gaikwad

4 Points Posted on 13 August 2018

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)

Pankaj Rawat

GST Practitioner

55067 Points Posted on 14 August 2018

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