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GST on Tobbaco leaves Export to Egypt

241 views 3 replies

Chisty Mohammad

36 Points Posted on 22 September 2018

firm is sole proprietorship,
GST registration done in August -2017,
till now no GST return filed till now,
but it's not a issue.. return will be filed with late fees,

till July-2018 No Business i.e nill return,

now in August-2018 month,

1 sale invoice which is IGST (Egypt) sale,

seller given invoice in USD say 20,000 USD..,

no separate IGST shown in invoice,

commodity is (purchase tobacco leave from farmer and supply to Egypt)

now what is the tax treatment in GST
how to calculate USD to INR
selling date = dollar conversion..

give some advice .....

Replies (3)

CA Shivam Arora

Chartered Accountant

2414 Points Posted on 22 September 2018

Firstly, for purchase, you are required to pay tax @ 5% under reverse charge mechanism.

Secondly, for sale, you are required to determine equivalent INR, which is 20000 x Exchange rate notification issued by CBEC prevailing on the date of issue of invoice. Suppose Taxable value= 20000 x 71= 14,20,000/-.

IGST @ 5% on 14,20,000/-.

Total Invoice=14,20,000+14,20,000 x 5%

You have to pay this IGST, which you may claim as refund later on.Another option is not paying IGST by filing LUT.

There are many more procedures to be followed.

Chisty Mohammad

36 Points Posted on 22 September 2018

thanks for reply...

we can claim IGST as refund...nice to hear..,

I think RCM is suspended now......i.e August-2018 need to pay RCM...?

and u said about LUT.

LUT I will try to get knowledge on that...