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TMI BlogExport of Services with payment of IGSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Export of Services with payment of IGST X X X X Extracts X X X X X X X X Extracts X X X X ..... es, in the case of export of services with payment of IGST, GST is payable even on advance received, with a few important clarifications and exceptions. Let's break it down clearly: ✅ Basic Rule under GST for Services: Under Section 13 of the CGST Act, the time of supply for services is: Earliest of: * Date of issue of invoice (if issued within prescribed time), OR * Date of receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment (advance or full). So, GST becomes payable at the time of receipt of advance, even before the invoice is issued - unless exempted. ❗ But What About Export of Services? Even for export of services, the same rule applies: * If you are exporting services with payment of IGST (i.e., claiming refund later under Rule 96), and you receive an advance, you are liable to pay I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST on that advance in the month of receipt. 🚫 No Exemption for Advance in Export Unlike goods (where advance received is not taxable anymore unless invoiced), there is no such exemption for services. So for services, whether it's domestic or export - GST is payable on advances received. 🧾 Example: You're providing consulting services to a client in the US. * On 10th April 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 025, you receive $5,000 advance. * On 25th May 2025, you complete the service and issue the final invoice. Your GST Liability: * IGST is payable in April 2025 on the advance received. * On final invoice, you pay IGST on the full amount and adjust the tax already paid on advance. 💡 Pro Tips: * Declare the advance in GSTR-1 (Table 11A) and pay IGST in GSTR-3B. * Adjust it when ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ising final invoice - don't double pay! * Keep FIRC/BRC for export refund claim. Reply By Rushab Jain: The Reply: Dear Sir, Then can we go for refund of IGST paid on advance basis or we can go on the basis of Invoice raised basis only? Thanks a lot for clarification. Reply By KASTURI SETHI: The Reply: On the basis of invoice raised. Advance amount takes the form of consideration at the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of final adjustment when invoice is raised. Reply By GAGAN KEDIA: The Reply: Dear Queriest, Please refer to Rule 96 (Refund of IGST paid on services exported out of India). Particularly Rule 96(9) - which provides for reference to Rule 89 for calculations (dealt with). Now, reference to Rule 89 - specifically sub-rule (4): There, it is defined what is Turnover of Zero Rated Supply of Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice [Clause (D)].
On careful reading of the definitio, you will get your answer as in which period you can apply for the refund.
Trust the above clarifies.
Reply By Sadanand Bulbule:
The Reply:
I endorse the replies. X X X X Extracts X X X X X X X X Extracts X X X X
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