We are a small e-commerce exporter of mobile accessories with our item values ranging from 300 to 600 Rs per shipment with a overall volume of Rs. 6 to 7 lakhs per month. All our payments are received through Paypal and items are shipped through Post (fulfilled by DHL E-commerce) to countries all over the world. There are tracking numbers available for 50% of the shipments whereas other 50% are shipped without tracking numbers through regular Airmail. Currently we are paying 18% IGST for all these small exports. We have taken LUT for exports without payment of IGST. How can we file these exports under 0% GST and what documents can be submitted to the Dept as proof of exports?
Hi
If you have applied for Letter of Undertaking, you don't need to charge or pay any IGST. You will need FIRC copies and shipping bill copies for this.
Also, you may opt for claiming refund of IGST already paid in past.
I assume the money from such sales is received in foreign currency. If it is received in INR, no refunds can be claimed and IGST needs to be charged and paid.
Thanks Lakshita for the reply. The issue is we don't have shipping bill copies since it goes through Postal mail. Some of the packages go with tracking numbers with limited information but some of them dont have any tracking numbers. Thing is, they are not inspected by customs due to the low value of the shipment and as a result no customs shipping bills are generated for these shipments. How do we show these as exports with 0% IGST? Also the money is paid in US Dollars but paypal converts it into INR and then transfers it to our bank. FIRC is required for each shipment or for each payment or can we get a consolidated FIRC from paypal? Thnx
Although I've not dealt with such cases in customs. But, there was a procedure laid down by customs in this regard. You may refer to Circular No. 14/2018-Customs.
FIRC is required for each payment. FIRC shall be issued by your bank. PayPal would not issue FIRC directly.
Hello Sir,
I am providing consultancy to clients with online Exports majorly to US, UK, Australia.
I have experienced that filing GST without use of LUT in certain cases is more beneficial and you can use LUT for such low value shipments. If shipments are properly made through csb-v website, I can assure you GST refund. Thereby making yor GST cost 0.
For exports made under LUT, you will require Shipping bills & FIRC. Since you have already mentioned, for low value item it would be difficult to get shipping bills. So I would not reccomend that route.
Hope this was helpful.
You can reach me on [deleted] for further assistance on your GST fillings.
Hi,
- You need FIRC for each foreign credit in your bank account. It is better to get the payment weekly or fortnightly to reduce the no. of FIRC.
- In respect to shipping bills, collect Airway bill from DHL.
Thanks
Hi
FIRC is issued by bank for each FC credit..
Dear Sir,
Hope you are doing well !!
Foreign Trade Policy explains, if goods exported by post, the exporter shall submit following documents in lieu of documents prescribed for export by sea or air, Bank Certificate of Export and Realization as in e-BRC, Relevant postal receipt and Invoice duly attested by Customs Authorities.
Hi,
Circular No. 14/2018-Customs deals with the Procedure for e-commerce exports through Post and clarification on personal imports.
You can go through the same.