Hi I am raising an invoice to a company based out of hongkong. I run a corporate presentation house in Bangalore and was connected to the hong kong office through the bangalore office. Here's my list of questions. 1. I am raising the invoice to the hong kong address and have also received purchase order from the hong kong team and the money will be paid to me by them in dollars. I would like to know if I can raise my standard invoice which I raise for my indian clients or do I need to submit any other supporting document to the gst council that I have exported my service to hongkong. As the hong team is aware that they are not suppose to pay me gst tax. 2. Do I need to apply for an import export license
1) You can raise the invoice in INR or foreign currency. Write Invoice for Export of Services on the header of invoice. Retain all documents of export i.e. purchase order for scrutiny purpose. Also get the proceeds within six months and exports the services within six months from the date of raising of invoice.
2) Apply for Import Export Code.
We may assist you in getting IEC.
Thank you so much for your response sir. But for the current invoice I don't need any additional documents right.
Invoice is sufficient to raise for the services rendered. No other additional docs is required.
Apply for IEC which is mandatory to mention on invoice.
I am sorry I am not having an IEC currently but I have already rendered the services and I am suppose to raise the invoice now so should I wait now to get IEC LICENSE or can go ahead raise the invoice now and apply for the license later.
I assume you are not registered under GST.
1. Mention it as an "EXPORT INVOICE". No other requirement specifically for export.
2. For service providers, IEC ia not required except some specified services. Please elaborate what is being exported for a correct answer.
It becomes a different scenario for point 1 if you are registered under GST. There may / may not be tax implications on the transaction. But it needs to be clarified.
Hii
For export of Services no need of IEC and for export of services/goods you have 2 options under GST law.
1 pay( through cash or Input) IGST on export and claim refund
2 file LUT and export without payment of IGST.
while making Refund application you have to submit proof of foreign remittance.
I am registered under GST and charge 18% to my indian clients in this case my indian client referred me to the hong kong client and this was done to save tax hence I received the purchase order from hongkong team. I have delivered the job and now to raise the invoice.
First you need to apply for IEC which will be mentioned on the export invoice otherwise invoice will be invalid. Bank will also ask for IEC for remittance.
We will help you in getting IEC.
Docs required are
1) Cancelled cheque copy
2) Aadhaar Card
3) Business address proof.
What is the Constitution of business i.e. proprietorship/ partnership/ Pvt.ltd.co.
In that case, if you are not charging GST in the export invoice, you need to file a Letter of Undertaking first.
If LuT is not filed, you have to pay the GST first while filing GST return and then claim its refund.
Dear lakshita I am a film maker and I had edited an video for my client. Dear Mr. Lalit What is the percentage of igst for export.
Dear lakshita I am a film maker and I had edited an video for my client. Dear Mr. Lalit What is the percentage of igst for export.
You must mention on the invoice whether the export is with payment of IGST or export under LuT without payment of IGST.
Also, mention GSTN, name and address of the recipient, name of the country of destination and address of delivery.
The invoice shall be issued within a period of thirty days from the date of supply of service.
IEC shall not be required.
IGST shall be charged @ 18%. But it is a better option to file LuT. It can be done online through GST portal.
percentage of IGST is same as applicable in india i.e. 18% as you mentioned in your question.
Hi,
In your case IEC may not be required. IGST will be payable@18%
Regards,
Nikhil.
IEC is mandatory to establish export in GST. For export without payment of GST, you need to submit LUT online. Percentage for IGST would be 18%.
I really don't understand each one of you is contradicting the other mr vivek states there is no document required but IEC is mandatory rest say IEC is not mandatory. Let me clarify my business. I am a film maker and did a corporate video presentation. The job is already delivered. We received a purchase order from Hong Kong office. We only raise the invoice after the completion of job now that I have delivered the job I have to raise my I voice. There is no gst in Hong Kong so I cannot include the gstn number of hong kong client. Also the reason why they routed the job was to save on the taxes. Request you to take all this into consideration when you reply me. I am registered for gst and charge 18% gst.
1) Firstly you need to obtain IEC because to establish export under GST, IEC is mandatory. In case of goods there are several other documents available like export manifest, shipping bills etc. In case of services there is no custom clearance or shipping bill therefore it is good practice to apply for IEC. It is one time registration and there is no need of renewal each year.
2) As you said you are exporting services to avoid GST in India therefore you need to obtain GST registration because in case of export there are two options available.
- Export with payment of taxes and claim refund of IGST paid on export.
- Export without payment of taxes. For that you need to submit LUT online.
You need to mention your GST No.on the invoices raised by you.
Note: Make sure it is export i.e. consumption of services outside India.
If you have already obtained GST No.,you just need to file LUT online to go for export without payment of taxes.
You can call me on 7060029944
I repeat again
You dont need IEC.
You can export without paying IGST after filling LuT online.
Dear Sir,
There is no requirement to charge GST from Hong Kong customer and you can claim refund of same from Government under below 2 options:-
1. Refund post export by applying to GST department.
2. Filing of LuT & claiming credit.
With respect to your second question, IEC code is mandatory
Hi,
1. You will have to write EXPORT INVOICE on the top of the invoice and also have to write any of the following two sentences (whatever is applicable):
A. Export of service against LUT without payment of taxes. Or
B. Export of service with payment of IGST.
2. I don't deal in services relating to import export code but to the best of my knowledge, import export code is not mandatory in case of services except certain specified services of government importance.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.com
Hi,
There is no need to get the IEC code.
Regards,
Nikhil.
As you have GSTIN ,so IEC not mandatory. Mentioning GSTIN on invoice will suffice.
