Latest Query & Reply

We may be doing some development work for a French company- so what will be the GST, if applicable & how to make the invoice for Export of services?

Kindly solve my query. 

Reply

Export of service under GST is ‘zero rated supply’ i.e. the goods or services exported shall not be levied GST.

However, there are two ways to export:

1.)    The goods and services can be exported either on payment of Integrated Goods and Service Tax (IGST) @ 18%, which can be claimed as refund after the goods have been exported, OR

2.)    Export under bond or Letter of Undertaking (LUT) without payment of IGST.

Invoice for export of service: - In case of export of goods or services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be.

In addition to rule 7 (Invoice Rule) also contain the following details:

1.)  name and address of the recipient; 

2.)  address of delivery; and 

3.)  name of the country of destination: