Service Export compliances under GST

Here are the answers to your questions: 1. Provision under GST Rules for Service export: - Service exports are zero-rated under GST (IGST Act, Section 16). - You need to obtain a LUT (Letter of Undertaking) or bond to export services without payment of IGST. 1. Tax invoice: - You need to issue a tax invoice for service exports, but it should be without GST (as it's zero-rated). - Mention "IGST not applicable" or "Export of services - Zero-rated" on the invoice. 1. GST Return filing provision for Service exports: - File GSTR-1 (details of outward supplies) and GSTR-3B (summary of outward supplies). - Report service exports in Table 6A of GSTR-1 and Table 3.1(a) of GSTR-3B. 1. IGST Refund: - Yes, you can claim an IGST refund for service exports. - File Form GST RFD-01 (Application for Refund) and follow the procedure. 1. Export incentives: - Consult the Ministry of Commerce and Industry's website for current export incentives. - Some popular schemes include: - Merchandise Exports from India Scheme (MEIS) - Service Exports from India Scheme (SEIS) - Export Promotion Capital Goods (EPCG) Scheme - Duty Drawback Scheme - RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme Additionally: - You may also be eligible for benefits under the Foreign Trade Policy (FTP) and other schemes. - Consult a GST expert or chartered accountant for specific guidance on your situation. - Refer to the CBIC (Central Board of Indirect Taxes and Customs) website for detailed information on GST provisions and procedures.

Hi,

As a manufacturer cum merchant exporter providing goods and services for EPC projects, here’s a detailed guide to your queries regarding the export of services under GST:

1) Provision under GST Rules for Service Export

Under GST, services provided to a location outside India are treated as "export of services" if they meet the following conditions:

• The supplier is located in India.
• The recipient is located outside India.
• The place of supply is outside India.
• Payment is received in convertible foreign exchange or INR, wherever permitted by RBI.
• The supplier and recipient are not merely establishments of a distinct person.

Service exports are treated as "zero-rated supplies" under GST, meaning you can either supply the service without charging GST under the LUT/Bond scheme or charge IGST and claim a refund.

2) Tax Invoice: IGST or LUT Scheme

If you're exporting services:

• With LUT (Letter of Undertaking): You can export without charging IGST, provided you have filed an LUT with the GST department.
• Without LUT: You must charge IGST on your invoice and later claim a refund of the IGST paid.

Thus, you need to choose between issuing invoices under the LUT Scheme or with IGST.

3) GST Return Filing Provision for Service Exports

You must report the export of services in your GST returns:

• GSTR-1: Declare the export invoice details under Table 6A (Exports), whether you're exporting with or without IGST payment.
• GSTR-3B: Report the export value in the "zero-rated supply" section if you're exporting under LUT or in the "taxable outward supply" section if charging IGST.
• The shipping bill or Invoice Reference Number should be matched with the relevant filings.

4) IGST Refund and Procedure

Yes, you can claim an IGST refund for service exports if you've paid IGST on the exported services. Here's the procedure:

• File GSTR-1 and GSTR-3B with export details.
• Link your invoice with the relevant export details (shipping bill or other documents).
• The refund will be processed based on the data submitted, and it usually involves the automatic processing of the refund to your bank account after validation by the authorities.

For LUT exporters (no IGST charged), you won’t need an IGST refund but can claim input tax credit refunds.

5) Export Incentives for Service Export (Similar to RODTEP for Goods Exports)

Currently, RODTEP (Remission of Duties and Taxes on Exported Products) is only applicable for goods exports. For service exports, you can benefit from:

• SEIS (Service Exports from India Scheme): Under SEIS, eligible service exporters receive incentives ranging from 3% to 5% of the net foreign exchange earned.
• IGST Refund on Export Services: As mentioned, you can claim a refund if you export services with IGST.
• Exemptions and Input Tax Credit Refunds: Under the LUT/Bond scheme, exporters can claim refunds on unutilized input tax credits.

For further information, you may want to consult a tax professional to understand the eligibility and requirements for SEIS or other potential schemes.

I hope this helps!