Export of Goods and Services to Foreign Customer
Export of goods is defined as taking goods out of India to a place outside India. Export of services means the supply of services where the supplier of service is located in India, recipient of service is located outside India and the place of supply is outside India. Exports can be without Payment of duty or with payment of duty.
Process of sale to foreign customer has been explained in this document.
Create a sales invoice
- Choose the
icon, enter Sales Invoice, and then choose the related link. - Select Customer on Sales Invoice header, GST customer type should be Export or Deemed Export or SEZ Development or SEZ Unit.
- Select G/L Account or Item Code on Sales Invoice line. GST Group Code, HSN/SAC Code should not be blank on the G/L Account or Item Card.
For example, there is a sales invoice for INR 10,000 and 18% IGST has to be charged on the invoice amount.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 IGST 1800 GL Entries for export of goods and/or services with payment of duty to Foreign Customer, SEZ Unit, SEZ Development Customer will be as following:
Particulars Amount Customer Account 10,000 IGST Refund Account 1800 IGST Payable Account -1800 Sales Account -10000 GL Entries for export of goods and/or services without payment of duty to Foreign Customer, SEZ Unit, SEZ Development Customer will be as following:
Particulars Amount Customer Account 10,000 Sales Account -10000
Hinweis
Export or Deemed export will have same treatment, as it is treated as interstate transaction and only IGST is applicable irrespective of location of receiver. There is no scenario of deemed export without payment of Duty, as company has to pay IGST and claim refund. Refund can be claimed either by seller or recipient.