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

1. Choose the icon, enter Sales Invoice, and then choose the related link.
2. Select Customer on Sales Invoice header, GST customer type should be Export or Deemed Export or SEZ Development or SEZ Unit.
3. 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.

See Also

Sale to Registered Customer with Overseas POS

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