In Case of Export, Govt does not charge any GST from us
it is because we are doing good for India and earning foreign exchange
But government wants to make sure that we actually receive money from Foreign Party
So, government ask us to first pay IGST and later claim refund when we receive money from outside India
If we do not want to pay this GST, we can give a Bond or Letter of undertaking to Govt that Money will be received from Outside India
Letter of Undertaking is a simple form which we have to fill online, that it is our guarantee that money will be received
In case of Export Govt Gives 2 Option
Option 1
Charge IGST on Bill
When Money Received from Outside India, Claim Refund
Bill should mention line-:
SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST
Option 2
Do not charge IGST on Bill
Bill should mention line-:
SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST
(As per new amendment, now Bond is not compulsory, LOU (Letter of undertaking) is sufficient
