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

 

Invoice to Be Issued in Case of Exports.jpg

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Transcript

Export of Goods and Service in GST Option 1 First Pay GST When Money Received Claim Refund Option 2 Submit Bond or LUT Do not pay GST We Charge IGST on Invoice No GST on invoice Tax invoice Sales IGST Total xx xx xx Tax invoice Sales Total xx xx Compulsory line on Invoice Supply Meant for Export on Payment of IGST Compulsory line on Invoice Supply meant for Export under bond or letter of undertaking without Payment of IGST

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.