QUESTION
DEAR SIR, MY QUERY IS WRT TO EXPORT INVOICE FORMAT WHICH IS FEMA AND GST
COMLIANT . SO FAR WE WERE DOING EXPORTS UNDER LUT , NOW WE WANT TO CHANGE THE
INVOICING PROCEDURE . IF WE SHOW THE IGST AMOUNT IN TOTAL VALUE OF INVOICES AND
ADD THE TOTAL AMOUNT IN THE AMOUNT TO BE PAID BY THE BUYER AS WE NORMALLY DO
WHEN WE ADD THE TAX, THE BUYER WILL NOT PAY THE SAME . FURTHER AS REQUIRED BY
RBI RULES AND PER THE DECLARATION MADE IN THE SHIPPING BILL THAT THE EXPORTER
WILL COLLECT THE SAME , AND IF WE DO NOT COLLECT THE FULL VALUE OF INVOICE , THE
BANK WILL CHASE US FOR THE DIFFERENCE AND WILL REPORT THE SAME TO RBI THAT
EXPORTER HAS NOT COLLECTED THE FULL VALUE OF INVOICE PLEASE CLARIFY AS PER BELOW
DETAILS CAN WE CLAIM REFUND OF IGST WITHOUT ADDING UP IGST CHARGED IN THE TOTAL
VALUE OF EXPORT INVOICE AND NOT VIOLATE THE RBI RULES (AS THERE ARE RESTRICTIONS
FROM RBI TO COLLECT THE SAME AMOUNT AS INVOICED) OPTION A VALUE OF EXPORT 10000
IGST 1800 TOTAL 11800 NOTE : IF WE COLLECT ONLY USD 10,000 , HOW WE CAN CLAIM
REFUND OF RS 1800 WIHOUT COLLECTING THE SAME AND THE REALISED VALUE IS LESS THAN
INVOICE VAILE AS DECLARED IN THE SHIPPING BILL. WE WILL BE REALISING ONLY USD
2913754.5 AND NOT USD 3428230.31 WILL IT BE OK , IF WE COLLECT LESS AMOUNT .
OPTION B VALUE OF EXPORT 10000 IGST 1800 TOTAL 11800 LESS : DISCOUNT 1800 NETT
10,000 ( AMOUNT CLAIMED UNDER LUT AND AS AGREED BY THE CUSOTMER APPRECIATE A
RESPONSE AT THE EARLIEST ENSURING COMPLIANCE OF RBI RULES , GST RULES AND TO
ENSURE THAT REFUND PROCESS IN NOT DELAYED DUE TO NON -COLLECTION OF IGST FROM
THE FOREIGN BUYER. PLEASE SHARE A LEGAL AND VALID EXPORT INVOICE FORMAT ALSO.
THANKS
ANSWER
For export you have to issue 2 invoices with 2 different series for the same
shipment.
One invoice is for the compliance of GST for moving goods from the Place of
Supply to the port. Your customer located in foreign country is not concerned
with the invoice issued under GST law.
Therefore for the purpose of shipment and accounting with the buyer you have to
issue another invoice. This is called Commercial Invoice. The Commercial invoice
will be taken into consideration by your buyer.
To avoid any confusion in accounting you should mention corresponding Commercial
invoice number on GST invoice.(Reply dt. 13-02-2020)