How to prepare GST Tax invoice for Exports
Why You need to issue GST Tax invoice for Exports:
In revised GST model law you can avail tax benefit for export of supplies in two ways.
(a) First method is export without payment of IGST and claim refund of Input tax credit.
- export goods or services under bond, subject to such conditions, safeguards and procedure as may be prescribed in this regard,
- In this case the export of Goods and/or services will be without payment of IGST
- The exporter in this case will be eligible to and claim refund of unutilized input tax credit
- This refund will be in accordance with provisions of section 48 of the CGST Act, 2016 read with rules made thereunder;
(b) Second method is export goods on payment of IGST and claim refund of IGST paid - A registered taxable person may export goods or services on payment of IGST,
- Export will be subject to such conditions, safeguards and procedure as may be prescribed in this regard,
- Exporter can claim refund of IGST paid on goods and services exported in accordance with provisions of section 48 of the CGST Act, 2016 read with rules made thereunder.
Taxable person exporting the supplies will be required to issue the GST tax invoice for exports.
How to issue GST Tax invoice for Exports:
As we have stated earlier export can take place in two ways.In First method you can export supplies without payment of IGST. In second method you can export the supplies on payment of IGST. In both of these cases it should be apparent on GST tax invoice for export.
When you make the export on payment of IGST. Your invoice shall carry the following endorsement.
“SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST”
When you make the export without payment of IGST your the invoice shall carry the following endorsement.
“SUPPLY MEANT FOR EXPORT UNDERBOND WITHOUT PAYMENT OF IGST”,
Apart from it some additional information is also required.
(i) name and address of the recipient;
(ii) address of delivery;
(iii) name of the country of destination; and
(iv) number and date of application for removal of goods for export [ARE-1].
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CA Shafaly Girdharwal
CA
New Delhi, India
CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.
