• Related to IGST in export

Dear Sir/Ma'am,

Please provide answers to my following questions:

(1) What is HSN code for Paintings (Modern & Contemporary)?

(2) I purchased a painting online from India in 14,250/- INR (12,723/- INR + 1527/- INR i.e. 12% IGST). Now I want to legally export it in US Dollar 900. How much tax (IGST) I have to pay to the government? Remember I have to issue the Invoice in US Dollar and pay the tax here in India in INR.

(3) What will be the essential fields in Invoice?

Sincerely,
R P Singh
Asked 4 months ago in GST

1. 9701

2. In case of export of goods, GST registration is required when turnover crosses limit of Rs.20 lacs. If you have obtained the registration due to other reasons then you should apply for LUT and then do the export transaction. LUT will allow you to export without payment of tax.

3. Invoice should contain the heading Invoice for export of goods with LUT, name of supplier, date of invoice, unique serial no.,name of purchaser, place of supply, GSTIN of supplier, HSN code, description of goods, taxable value, invoice value. Invoice should be signed by authorised representative.

4. You can claim refund for GST paid on inputs.

5. Please take phone consultation for other details as the topic is comprehensive.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

Hello,

 

Please note following

 

a) Painting fall under HSN code of 9701 (Both Modern & Contemporary)


b) So if the painting is Exporting to USA Market through courier or logistics arrnagement from Indian and you are reciving foreing funds through banking channel than said transaction will be treated as export of goods. You can take LUT after taking registration under GST and can export this goods without making any tax payments

c) There will be 2 Invoices - 1 in USD for client and customs delcaration & 2 In indian supees for indian accounting records.
Invoice must contain following details

  • Unique Invoice No. – Not exceeding 16 Digit
  • Invoice Date
  • Name of Buyer / Service Recipient
  • Buyer / Service Recipient full address
  • Place of Supply
  • GST No. of Supplier
  • Product Details / Description of Service
  • HSN Code 
  • Total Taxable Value
  • GST Bifurcation (Only if LUT not taken)
  • Signature by the person authorized under GST
  • Decalration stating that it is exported under LUT and hence not subject to GST
  • LUT ARN

Vishrut Rajesh Shah
CA, Ahmedabad
744 Answers
18 Consultations

5.0 on 5.0

Is purchasing and selling painting your business?

The HSN code for painting would be 9701.

You need to charge GST @12% on such painting under the above mentioned HSN code but you need to mention 6 digit HSN code 970110.

The main details include name of seller, name of consignee, address of both party, HSN code, quantity, description etc.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

Obviously on the selling price and since you'll get the refund of entire amount you can assume the selling price inclusive of GST.

You need to show Indian value GST on it and then make a column for amount in USD.

If you need professional assistance feel free to contact me

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

It will be on selling price if you are not taking LUT

Vishrut Rajesh Shah
CA, Ahmedabad
744 Answers
18 Consultations

5.0 on 5.0

Hi,

 

Please let us know if you are already registered under gst or not?

 

Because, sale of painting in USA will be an export transaction and will not be liable to igst if you have taken LuT. Please make sure you receive the money in foreign currency and maintain FIRC for the same.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

If you have not taken LUT, please take that. Still, if you want to supply without LuT, then you will have to charge gst. HSN code is 9701.

 

Invoice must contain following details:

Invoice No. – Not exceeding 16 Digit
Invoice date
Buyer's name
Buyer/ Service Recipient full address
Placef of Supply
GST no. of Seller
Product details / Description of Servicso
HSN code 
Total taxable Value
Signature by the person authorized under GST

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

- Why to pay tax when you can export without tax by applying LUT?.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

Hello,

 

1. HSN 9701.

2. If you are registered under GST, then you are liable for GST compliance on such a sale of a painting. Either you can take a LUT before making the sale and supply such painting without payment of IGST. Or else you can supply such painting with payment of IGST and later on claim the refund.

3. 

The tax invoice issued must clearly mention information under the following 16 headings:

1. Name, address, and GSTIN of the supplier
2. Tax invoice number
3. Date of issue
4. If the buyer (recipient) is registered then the name, address, and GSTIN of the recipient.
5. If the recipient is not registered and the value is more than Rs. 50,000 then the invoice should carry:
    i. name and address of the recipient.
   ii. address of delivery.
6. HSN code of goods or accounting code of services.
7. Description of the goods/services
8. Quantity of goods (number) and unit.
9. The total value of the supply of goods/services
10. The taxable value of supply after adjusting any discount
11. The applicable rate of GST
12. Amount of tax
13. Place of supply and name of destination state for inter-state sales
14. Delivery address if it is different from the place of supply
16. Signature of the supplier

17. LUT Details.

 

I hope that this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

If LUT is not applied for, then on the selling price.

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

1. HSN 9701

 

2. Regarding GST Liability, Since this would be considered as export of goods, you have two options:

 

First, to apply for LUT for a F.Y. and then supply goods without payment of IGST on such services.

 

Second, supply such goods with payment of IGST  without LUT and then later claim the refund of such IGST paid.

 

3. Components of Export Invoice Under GST

  • Name, address and GSTIN of the supplier (exporter in this case)
  • Invoice Number – A Serial Number not exceeding 16 characters, in one or multiple series, containing letters or numerals or special characters
  • Date of it issue
  • Due date
  • Name, Billing Address and Shipping Address (if the Shipping Address is different from the Billing Address) of the recipient
  • Type of Export undertaken with a statement “Supply Meant for Export on Payment of IGST” or “Supply Meant for Export Under Bond Without Payment of IGST”. As mentioned above, the type of exports include (i) export under Bond or LUT or (ii) export by paying IGST.
  • Shipping Bill details including Shipping Port Code, Shipping Bill Date and Shipping Bill Number. Export Invoice can be created without including Shipping Bill details. However, exporter supplying goods or services with payment of IGST would be needingShipping Bill details for claiming refund of IGST so paid. This is because Shipping Bill that contains GST invoice details furnished by the exporter is taken as application for claiming refund of IGST paid on such exports.
  • Conversion Rate from Indian Rupee to customer’s selected currency. Such an exchange rate is specified on Bill of Export issued by Custom authorities.
  • Digital Signature or Physical signature of the exporter or the person authorized on his behalf.
  • Total value of the invoice both in terms of Indian Rupee as well as the foreign currency. This must be calculated towards the end of the invoice.

 

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

It would be on selling price.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

You want to claim refund of ITC?

If you are bearing the cost of such shipping then you can claim refund of such shipping as it will be for such export.

 

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

- Yes shipping cost would be part of taxable value.

- No we can not claim the refund.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

Yes.

 

No, you cannot claim refund of the shipping cost. However, you may clain refund of the GST charged on the shipping cost by the shipping co.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

1. Yes, it would form part of the Taxable Value.

2. No, a refund for the shipping cost won't be available. 

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

1.Yes, it would be part of taxable value.

 

2.No.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

If its CIF Transaction than yes

Vishrut Rajesh Shah
CA, Ahmedabad
744 Answers
18 Consultations

5.0 on 5.0

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