Well, what are GST invoices or Export GST Bills? Export GST Bill is an invoice formed to export or supply goods as well as services to the people living out of India in a foreign currency and it is the exporter who creates this bill. As a matter of fact, the export invoice format and particulars are similar to the normal GST tax invoice. The details that are contained in export GST invoices includes name, address, and GSTIN of the supplier; invoice number; date of issue and due date; name, billing address, and shipping address of the recipient, conversion rate, type of export undertaken, shipping bill details; total value of the invoice in both currencies; and digital signature.
This article is presented just to make you understand various facts, particulars, and formats of export GST bills or GST invoices in detail. If you want to know more, go on reading further.
Benefits of Using Downloadable Templates for GST Invoice
Why invoice templates are opted more than other billing ways? It is because invoice templates offer ease and affordability while keeping business finances on track. Moreover, it is also one of the best ways to get paid for the work you complete for your clients. Besides, there are many other benefits of making professional electronic invoices no matter if it is an export invoice template or a normal invoice template. Check out a few of the benefits of creating invoice templates right below.
- Get 100% free downloads of invoice templates
- Arrange account information and status of the client
- The download of invoice templates is available in various formats including CSV, XLS (export invoice format in excel), DOC, PDF, and many more
- Free software is available for making invoice templates
- Allows you to create a straightforward and professional impression on your clients
- Be ready with the crucial information whenever required without losing it
- Lets you customize the fields of your invoice template as per your requirements
These are the actual benefits when it comes to using invoice templates. You can now prepare invoices without any mistakes as you will get a lot of 30-day free trial tools on the internet to form invoice templates. With these tools, you can even enjoy many other features including automatic reminders, a billing dashboard template, time tracking, expense tracking, recurring invoices, and more.
Better Alternatives for GST Bill Format/GST Invoice Formats
Sometimes, certain businesses make use of alternative tax invoice formats in place of GST bill formats no matter if it is GST export invoice format, normal GST invoice format, or LUT invoice format. Check out a few of the common GST invoice formats alternatives below that are made under the specifications of the GST council:
A registered merchant issues a receipt voucher when it is the case of getting advance payment from the recipient for the supply of goods and services.
Delivery challan is issued by the merchant when it is about dealing with special deliveries like foreign transport of goods for professional purposes, liquefied gas supply, foreign transport of goods for non-professional works, and so on.
The export invoice format in GST is slightly different from normal GST invoices as it should comprise PAN (Permanent Account Number), IEC (Import Export Code), and more. However, the procedures for GST return filing and documentation are the same according to the standardized GST rules. Besides, the export invoice format is different under GST when the supplies are made to a foreign country.
Reverse Charge Invoice
The recipient has to pay the tax if he or she is buying goods from an unregistered supplier. At that time, the recipient should issue a reverse charge invoice on the supply date of such goods and services as well.
Bill of Supply
A registered supplier usually issues a bill of supply when there is a supply of exempted goods or services and when the supplier is a registered taxpayer.
Details to be Captured on GST Invoice
Of course, the export bill format under GST is somewhat different from the normal invoice formats as it should capture certain important details for sure. Now, what details should be captured in an export invoice format in a real sense? Let us check out below:
For export invoice (in India):
- Invoice Number
- Name of Supplier
- Address of Supplier
- GSTIN of Supplier
- Date of Issue and Due Date
When it comes to tax invoice for export (Outside India):
- Name of Customer
- Billing Address of Customer if different
- Shipping Address of Customer
- Type of Export like Export with IGST, Export under Bond/LUT, and SEZ with IGST
- Details of goods with description, quantity, and measurement units
- Shipping bill information should be port code, number, and date. It is possible to form an export service invoice format but you would definitely need these details while claiming a refund of paid taxes.
- Conversion rate as the bill is made for a foreign country. The conversion rate can be from INR to any selected currency.
- Digital signature of an authorized person or the supplier
- Tax rates of every product purchased and should be mentioned in separate columns like CESS or IGST if required
- The total value of the bill calculated in INR and the foreign currency you selected
However, it should be noted that there is a specific time period to issue GST invoices for supplying goods and services. To supply goods, the tax invoice should be issued before delivery of goods to the customer, removal of goods, and the issue of account statement/payment. On the other hand, when it is for supplying services, the tax invoice should be issued in 30 days from the date of service rendered and 45 days from the date of service provided (when the supplier is a financial institution, banking company, or an insurer).
Export invoice FAQs
1. Is GST applicable on the export invoice?
As the export of goods and services is identified as a zero-rated supply, the GST is not imposed on the export of any type of goods and services. However, a duty drawback was offered for the tax paid on the exempted goods exported.
2. What is a commercial invoice for export?
The commercial invoice for export is nothing but export documentation created by the exporter for the recipient to give the evidence of ownership and payment details. It involves all the necessary data about the purchased goods, amount, value, and more and it acts as a bill of sale between the exporter and importer. Above all, these kinds of invoices are usually used by B2B and B2C corporations.
3. Can export invoice be raised in INR?
Yes, the export invoice can be raised in INR currency as the Foreign Exchange Management Act, 1999 has claimed that there is no restriction on raising an export invoice in terms of Indian Rupees. Moreover, it has been even stated that all export invoices can be converted in any of the freely convertible currency or else INR currency but the export contracts might be carried forward in freely convertible currency.
4. How do I export an invoice in busy?
You can export an invoice in two cases while issuing a letter of undertaking (LUT) and On payment of Duty (IGST). However, there are two options for the registered taxable person to export goods or services under the GST regime. Export transactions are done under bond when it is to claim a refund of unutilized input tax credit and the same is done on payment of IGST when it is to claim a refund of IGST paid on exported goods or services.
5. What is Lut in export?
LUT(Letter of Undertaking) in export is nothing but documentation that is filed by the exporters to export goods and services without the need to pay taxes.