Outsourcing export invoices

Import / Export 225 views 6 replies

Moosa Tamijuddin

Finance and Project Controller

115 Points Joined January 2015

Gentlemen,

Our Company has outsourced employees to our US customer for a particular project. Last month we invoiced them without including IGST since the customer is arguing no GST implication for U S Dollar invoices. Please help us how could we streamline this. All those recommendations, viz, pay IGST and claim ITRC or go for Bond or Letter of Undertaking etc. are not working with the customer.

We are trying to register ourselves with STPI also to avail exemptions available, if any.

Please help. Thanks & Regards,

Replies (6)

Chhatra Singh Dugar

1464 Points Joined June 2017

GST is a destination based law.
Place of supply & Location is recipient are two important co ordinated.
As your location of recipient is in US which is not taxable territory. So you can not charge IGST on Invoice.
For you to streamline yourself in this newly introduced GST Law pl contact us on this email ID
taxadvisor4u @ gmail.com

CA Suresh Jain

Proprietor

8989 Points Joined August 2007

It looks that registration with STPI is not beneficial for you. For export you can raise a commercial invoice in addition to the tax invoice as per the export order/contraact. In The tax invoice the consideration can be shown by you bifurcating the same in the value of service provided and IGST.

You can claim refund of IGST

N. Jain

group.blr @ gmail.com