Export invoice

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2017 A is a service provider registered under GST in Delhi. A provide service to 'C' of a foreigner at Agra and received payment in US $ through Bank. Can A raise invoice in the name of 'C' and charge IGST on it ? If yes, than can it post in 3.1 of GSTR-3B as outward supply and in 3.2 as interstate supplies as Supplies made to URD and what should be the place of supply?

Another question is whether A should apply for IEC code?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 September 2017 A can raise invoice in the name of 'C' and charge IGST on it. He can post it in 3.1 of GSTR-3B as outward supply and in 3.2 as interstate supplies as Supplies made to URD and the place of supply is Agra.

Chhatra Singh Dugar

Chhatra Singh Dugar (Expert)
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20 September 2017 In my opinion for a single transaction no need to apply for IEC

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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24 July 2024 Yes, A can raise an invoice in the name of 'C' and charge IGST (Integrated Goods and Services Tax) on the service provided. Here’s how the process works under GST:

### 1. Invoice and IGST Charging:

- **Invoice to 'C'**: A can issue an invoice to 'C' in US $ (since the payment is received in US $), specifying the details of the service provided and the IGST amount charged.
- **IGST Calculation**: The IGST will be calculated based on the rate applicable for the service provided under GST law. Since it's an interstate supply (service provided from Delhi to a location outside Delhi), IGST will be charged.

### 2. Reporting in GSTR-3B:

- **Outward Supply (3.1 of GSTR-3B)**: A should report this transaction as an outward supply in GSTR-3B under 3.1 (Taxable outward supplies).
- **Interstate Supplies (3.2 of GSTR-3B)**: Since this is a supply made to an unregistered person (URD) located outside Delhi (interstate supply), it should be reported in 3.2 (Zero-rated supplies and deemed exports).
- **Place of Supply**: The place of supply for services under GST is determined based on the location of the recipient. Since 'C' is located outside India, the place of supply will be considered as outside India (as per Section 13 of the IGST Act, 2017).

### 3. Need for IEC (Importer Exporter Code):

- **IEC Requirement**: Yes, A should apply for an IEC (Importer Exporter Code). This code is mandatory for any person or entity involved in importing or exporting goods and services from India. Since A is providing services to a foreign customer and receiving payment in foreign currency (US $), an IEC is necessary for compliance with export-import regulations.

### Conclusion:

- A can raise an invoice to 'C' in US $, charge IGST on the service provided, and report this transaction in GSTR-3B accordingly.
- The place of supply for the service will be outside India, and A should apply for an IEC to facilitate export-related transactions.

Ensure to consult with a GST consultant or tax expert to ensure compliance with GST regulations and to handle foreign transactions effectively under GST.