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TMI BlogExport of ServiceX X X X Extracts X X X X X X X X Extracts X X X X ..... XYZ (India) supplied goods for export and taken advance payment against it. The foreign customer at the last minute cancelled the order and therefore XYZ had not returned back the advance to the customer. 1) If the foreign customer is a related party / parent company, is XYZ liable to pay GST on the advance forfeited? 2) If the foreign customer is an independent buyer and not related, is XYZ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay GST on the advance forfeited? - Reply By MUKUND THAKKAR - The Reply = Forfeited amount covered under LD. so need to Pay GST as per my view. other experts comments are welcome. - Reply By Shilpi Jain - The Reply = Even if considered as LD it would be an export of service and no GST liability as the customer is abroad. - Reply By Alkesh Jani - The Reply = The query needs more e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laboration. Export of goods had taken place i.e. Shipping bill is filed and LEO is given? What is the position of goods, i.e. where it is lying? When advance payment is received? - Reply By Abhishek Jadaun - The Reply = As per my view, GST applicable on forfeited advance, if you have applied for LUT then it will be zero rated supply otherwise pay GST and go for refund. In your case transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion value (consideration) is advance forfeited so no matter it is related party or not GST is applicable in both case. - Reply By KASTURI SETHI - The Reply = This service (LD) is integrally related to goods meant for export and goods have not left India. As per the query, order for export was cancelled at the eleventh hour. It appears that goods have not left India. These have not been supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d outside India. It appears to me that goods are lying in India. Hence it cannot be export of service. However, the query needs to be elaborated for correct and fool proof reply. - Reply By ABHISHEK TRIPATHI - The Reply = Dear Kaustubh Ji, Agree with Shilpi Ma'am. If the department asks you to discharge GST liability under Sl. no. 5(e) of Schedule II as supply of services(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not returning the advance), then also, it may be called as 'export of service' and hence, no GST liability. - Reply By YAGAY andSUN - The Reply = In addition to above replies the procedure of Back to Town will be required to be complied with in case of export return after LEO Date. - Export of Service - Query Started By: - Kaustubh Karandikar Dated:- 26-5-2021 Goods and Services Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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