Export Invoice in GST: Similar to a tax invoice, an export invoice is raised by an exporter or supplier of goods and services listing the items exported, the amount due from the importer and other details. The export invoice gains significance in the event of claiming insurance and as a proof of transaction between the exporter and importer. Moreover, apart from being an important part of the entire shipping paperwork, the export invoice also helps the government in determining the right value of the exported items and the taxes to be levied.
Here’s how you can create an export invoice with the required details:
What are the details/documents required for an export invoice?
An export invoice typically provides details of the exporter and the importer, invoice details such as invoice number, date of issuance, due date, export type, shipping bill details, total invoice value, exporter’s GSTIN, etc. Apart from this, the invoice also includes packing and shipping information such as destination port, container number, vessel number, goods’ details (such as their HSN code, rate, quantity, units, and amount), shipping mark, container seal number, etc.
Also read: Starting export business? Here’s how step-by-step you can get your export license online
How to create the export invoice?
You can easily create an invoice for exported goods from existing softwares in the market. Enter the details required (mentioned above) such as invoice number, due date, date of issuance, destination port, shipping address, etc., and save the document. You can also get a printout of the invoice.
What type of export should be selected in the invoice form?
Importantly, while choosing what kind of export it is in the invoice form, understand whether it is first, a deemed export which means your supplies are shipped to export-oriented units (EOUs) from where they eventually get shipped to their destination. Second, if you have a letter of undertaking (LUT) from the government, select the LUT/Bond type to export without IGST and claim a refund on input tax credit on purchases of inputs used for exporting the goods.
Moreover, if you are paying IGST to export goods, select this under the export type. In such case, you can claim a refund of the IGST paid subject to filing correct and sufficient information in both GSTN and Customs system.
Also read: MSME ministry invites tender to study export issues faced by MSMEs
What is SEZ export?
SEZ with IGST is another option under the type of export wherein the goods supplied to a special economic zone (SEZ) are treated as a zero-rated supply. Hence, the IGST is not required to be paid on the export.
When should an export invoice be raised?
In the case of the export of goods, the invoice is to be raised at the time of removal of goods for delivery or before that. In the case of service exports, the invoice can be issued before or after the services have been offered.
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