Question ID : 41169

IGST in Export Invoice

In case an Exporter opts for Supply of Goods on Payment of IGST, then Whether the exporter shall charge IGST on FOB Value or on (FOB Value + Insurance + Freight) ? Please advise and clarify.

It depends on the Inco terms agreed between the parties, as per Section 15 of the CGST Act 2017, GST shall be paid on the 'Transaction value' which is the price paid or payable. Thereby, for the FOB contract IGST shall be calculated on the FOB value and for the CIF contracts IGST shall be calculated on the CIF value.