Goods and Services Tax

TAXABILITY OF EXPORT TO NEPAL

Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 12-2-2018 Last Replied Date:- 18-2-2018 – Sale to Nepal and Bhutan is taxable or it will be considered as zero rated supply if payment has been realized in Indian currency . – Reply By Rajagopalan Ranganathan – The Reply = Sir,Export to Nepal is zero rated but export to Bhutan is liable to IGST. – Reply By ROHIT GOEL – The Reply = Sir but payment has been realized in INR and not in foreign currency – Reply By Alkesh Jani – The Reply = Sir, My point of view is that export of goods to Nepal or Bhutan fulfills the condition of GST law for taking goods out of India, hence, it will be treated as zero rated supplies. With regards to realization in Indian currency is concern, the Circula

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ertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan . Accordingly, it is clarified that the acceptance of LUT for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SEZ developer or SEZ unit under LUT will also be permissible on the same lines. The supply of servic

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ces in the GST Law requires that the payment for such services should have been received by the supplier of services in convertible foreign exchange. But with effect from 27.10.2017 this condition of receipt of export proceeds in foreign exchange had been removed vide Sl. No. 10 D of Notification No. 9/2017- Integrated Tax (Rate) dated 28.6.2017 as amended by Notification No. 42/2017-Integrated Tax (Rate) dated 27.10.2017. – Reply By Alkesh Jani – The Reply = Sir, Thanks for your valuable views, In the instant case it may be treated as Export of service with Nil rated. – Reply By Kishan Barai – The Reply = Make sure in your Bills of Exports there would be one condition that weather supply ment against LUT/Bond in it one needs to tick Y or N

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