export

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suman (Querist)
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11 August 2017 we are exporting a material which is laying in our stock. we charge igst in our invoice. value value will be usd500 + igst. wht amount the exporter will give us? only mterial value or material value +igst??? plz clarify urgently

CA Suresh Jain

CA Suresh Jain (Expert)
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12 August 2017 Your buyer shall pay you as per contract between you and you have to raise invoice accordingly
N Jain
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suman

suman (Querist)
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12 August 2017 your answer is not clear. i am asking will the buyer which is in srilanka pay the igst charged by us in case of export of goods.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 When you are exporting goods from India, the transaction involves a few specific considerations regarding the invoicing and payment process, especially with regard to IGST (Integrated Goods and Services Tax). Here’s how it typically works:

1. **Invoice Value and IGST:**
- You are exporting goods with an invoice value of USD 500. Along with this, you charge IGST (Integrated Goods and Services Tax).
- IGST is applicable on exports but is ultimately zero-rated, meaning that while you charge IGST on your invoice, you can claim a refund or offset it against other taxes.

2. **Payment to the Exporter:**
- When you export goods, the payment you receive from the exporter typically includes the value of the goods plus any applicable taxes.
- In your case, the exporter will pay you the invoice value of USD 500 plus the IGST amount that you have charged.

3. **Clarification on Payment:**
- The exporter will pay you the total amount mentioned in your invoice, which includes both the material value (USD 500) and the IGST amount.
- For example, if your IGST amount is calculated at 18% of USD 500, it would be USD 90.
- Therefore, the total amount payable by the exporter would be USD 590 (USD 500 + USD 90).

4. **Refund or Offset of IGST:**
- After the export, you as the exporter can claim a refund of the IGST paid on inputs used in the exported goods or utilize it as a credit against other GST liabilities.
- The process for claiming IGST refund or input tax credit (ITC) is separate and would be handled through the GST portal or relevant authorities.

In conclusion, the exporter will pay you the total amount mentioned in your invoice, which includes both the material value (USD 500) and the IGST amount. The IGST charged is part of the total invoice value that the exporter will remit to you.