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Documents & compliances that every exporter needs to keep in mind
May 15, 2019

Exports have been granted a beneficial treatment even under the Goods and Services Tax (GST) legislation. In terms of the GST legislation, exports are 'zero rated supplies' i.e. supplies on which the GST rate is fixed as 'zero'. While exporting goods/ services, an exporter has the following options: 
 
Export goods/ services or both under a bond or letter of undertaking (LUT) without payment of tax
Export goods/ services or both with payment of GST.
 
An exporter should keep the following points in mind before under taking export of goods/ services: 
 
For Export of Goods 
In terms of the GST legislation, export of 'goods' means taking goods out of India to a place outside India. An exporter of goods is required to undertake export of goods in terms of export procedure as prescribed under the Customs law and is required to ensure that following documentation and compliances are undertaken : 
Obtain an Import Export Code (IEC);
Furnish a LUT or Bond in case exports are intended to be made without payment of taxes;
 
 
Ensure that a robust Agreement/ Purchase Order is entered into with the recipient of goods for export of goods;
Issue a tax invoice, typically containing the following details:
 
 
Endorsement stating "supply meant for export on payment of integrated tax" or "supply meant for export without payment of integrated tax";
Name, address and GSTIN of the supplier;
Invoice No. and date;
 
 
Name and address of the recipient, address of delivery and country destination;
HSN code of the goods along with description;
Quantity of goods and unit;
Total value of goods; and
 
 
Signature of the supplier of the authorised signatory.
File the shipping bill. It should be ensured that accurate details of the tax invoice are mentioned in the shipping bill;
Details of export invoices are also required to be accurately furnished in the GST returns.
Further, exporters of notified goods to notified markets are also entitled for Duty Credit Scrip under the Merchandise Exports from India Scheme at notified rates (2% to 7%) on realized Free on Board ('FOB') value of exports in free foreign exchange or on FOB value of exports as given in the Shipping Bills in freely convertible foreign currencies, whichever is less. In addition, the benefit of refund under GST may also be explored. 
 
 
    

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