we have done export of cement charging IGST on value of goods and freight.
However Custom officer prepared shipping bill on value of goods only resulting IGST value is lower in shipping bill in comparison to our invoice .
This will result getting short refund of IGST as per shipping bill.
whether action of Custom officer is correct for preparing shipping bill without considering the freight amount shown in the invoice .
Sir. IGST declared on exports bill is a mechanism of claiming GST refund from the customs authority. As per gst law, in case where the contract is a FOB one with freight and insurance declared separately, the taxable value for calculation of IGST is the FOB value. Customs officer is correct.
So ideally, your tax invoice which would reported in gstr 1 would be like under.
total value 120
taxable value 100
igst value 18 ( say 18 % goods )
Rs.2 ( freight and Insurance would be reported in non gst supplies )
Regards
CA. Raj Doshi
R C D & Co.
Chartered Accountants
CAclubindia
