Day Progress
✈️ 15 Days Export from India Challenge
# DAY 3
Export Tax Invoice
Under GST
Mandatory Fields · LUT Declaration · HSN · GSTR-1 Reporting · Customs Compliance · DBK
📌 Why the Export Invoice Is More Than a Billing Document
An export invoice is the foundation of your entire export compliance chain. A single error in GSTIN, HSN, LUT declaration, or invoice value can block your refund, trigger GST demands, and create customs objections. Today we break down every field — so you never make those mistakes.
⚖️ Legal Basis
Governing Legal Provisions
Section 16 · IGST Act
Zero-Rated Supply
Exports are Zero-Rated — GST law applies but final tax burden is zero. ITC remains available.
Section 31 · CGST Act
Mandatory Tax Invoice
Every export of goods or services must be accompanied by a GST Tax Invoice.
Rule 46 · CGST Rules
Mandatory Particulars
Specifies every mandatory field to be included on every GST invoice — exports included.
Rule 96A · CGST Rules
LUT / Bond Mechanism
Governs export without payment of IGST under LUT. Defines timelines and recovery provisions.
🛣️ Two Routes
Two Ways to Export Under GST
Route 1 — Under LUT
Most common · Recommended for MSMEs
- ✓ GST Rate = NIL on invoice
- ✓ No working capital blockage
- ✓ File Form GST RFD-11 annually
- ✓ Refund claim only for ITC on inputs
- ✓ Invoice must carry LUT declaration
“Supply meant for export under Letter of Undertaking without payment of Integrated Tax.”
Route 2 — With IGST
For businesses with large ITC accumulation
- → IGST charged on invoice at applicable rate
- → Tax paid via ITC or Cash Ledger
- → IGST refund claimed post-export
- → Shipping Bill acts as refund application
- → Capital blocked until refund processed
📝 Day 3 Class Notes
Handwritten Notes — Export Invoice
Day 3 — Export Tax Invoice: Actual Format with Annotations
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🔍 Click to enlarge
🔍 Field-by-Field Breakdown
Every Field of the Export Invoice
🏢 Section 1
Exporter Details
- → Legal name as per GST registration
- → Complete registered address
- → GSTIN (must exactly match GST records)
- → State Name & State Code
- → IEC Number (issued by DGFT)
- → Email / contact for reference
GSTIN: 07XXXXXXXXXXXXX
IEC: 0518XXXXXX
State Code: 07 (Delhi)
IEC: 0518XXXXXX
State Code: 07 (Delhi)
🔢 Section 2
Invoice Identification
- → Unique invoice number (max 16 chars)
- → FY-wise sequential numbering
- → Invoice date (time of supply anchor)
- → Delivery note / dispatch reference
- → Mode / terms of payment
- → Buyer’s order no. & date (P.O. reference)
Invoice No: FY25-26/00050
Date: 3-June-25
Terms: 100% Advance
Date: 3-June-25
Terms: 100% Advance
🌍 Section 3
Importer & Consignee Details
- → Foreign buyer name & address
- → Country of destination
- → EXIM Code / Tax ID of buyer
- → Consignee details (if different from buyer)
- → State name of consignee
- → Important for merchant & 3rd party exports
XYZ Traders
Kathmandu, Nepal
Country: Nepal
Kathmandu, Nepal
Country: Nepal
🛃 Section 4
Customs & Shipping Details
- → Port of Loading (e.g. ICD Tughlakabad)
- → Port of Discharge (foreign port)
- → Country of origin = India
- → Dispatched through (carrier/customs)
- → Destination (city + country)
- → Incoterm (FOB, CIF, EXW etc.)
Port of Loading: ICD TKD
Destination: KATHMANDU, NEPAL
Terms: FOB Delhi ICD TKD
Destination: KATHMANDU, NEPAL
Terms: FOB Delhi ICD TKD
📦 Section 5
Description of Goods
- → Specific product description (no vague terms)
- → HSN / SAC Code (mandatory)
- → Quantity with unit of measurement
- → Rate per unit
- → Total value per line item
- → Discount (if any)
1. XYZ · HSN 7326 · 1000 PCS @ ₹55.80 = ₹55,800
2. ABC · HSN 6912 · 100 PCS @ ₹131.70 = ₹13,170
2. ABC · HSN 6912 · 100 PCS @ ₹131.70 = ₹13,170
💰 Section 6
Tax & Invoice Value
- → Output IGST rate shown for transparency
- → “EXPORT” marked — tax = zero under LUT
- → Freight, packing, loading, insurance charges
- → Total invoice value (INR + F.C.C.)
- → Amount in words
- → Authorized signatory & signature
Total: 14750 PCS · ₹78,036.60
INR Two Lakh Seventy Nine
Authorised Signatory ✍
INR Two Lakh Seventy Nine
Authorised Signatory ✍
📋 Quick Reference
Invoice Fields — Mandatory vs Optional
| Field | Requirement | Why It Matters |
|---|---|---|
| GSTIN of Exporter | Mandatory | GST return matching & refund eligibility |
| IEC Number | Mandatory | Customs clearance cannot proceed without IEC |
| Invoice Number & Date | Mandatory | Time of supply, GSTR-1 reporting, refund tracking |
| Foreign Buyer Details | Mandatory | FEMA compliance & customs verification |
| HSN / SAC Code | Mandatory | Customs classification, duty drawback & incentives |
| Description of Goods | Mandatory | Customs scrutiny — vague descriptions cause delays |
| Quantity & Unit | Mandatory | Shipping bill quantity match |
| Invoice Value (INR + FCY) | Mandatory | Customs valuation & export incentive calculations |
| LUT Declaration | Mandatory | Missing = GST demand + interest liability |
| Port of Loading | Mandatory | Shipping Bill matching — wrong port delays refund |
| Country of Origin | Mandatory | Certificate of Origin & trade agreement benefits |
| Incoterms | Mandatory | Customs valuation & freight cost inclusion/exclusion |
| Freight/Packing/Insurance | Optional | Disclose separately where applicable for transparency |
| Buyer’s PO Reference | Optional | Useful for reconciliation & buyer requirements |
| Container / Seal No. | Optional | Shipping & packing list reference |
| E-Invoice IRN (if applicable) | Mandatory | Required if e-invoicing turnover limit crossed |
📊 GST Return Filing
Reporting Export Invoices in GST Returns
GSTR-1
Outward Supply Return
→ Table 6A — Exports
- → Invoice Number & Date
- → Shipping Bill Number
- → Shipping Bill Date
- → Port Code
- → Taxable Value
- → IGST Paid (or zero under LUT)
- → Type: WOPAY (LUT) or WPAY (with IGST)
GSTR-3B
Summary Return
→ Zero Rated Supplies
- → Reported under Zero-Rated Supplies section
- → Refund processing depends on matching:
- → Invoice ↔ Shipping Bill match
- → GSTR-1 ↔ ICEGATE data match
- → GSTR-3B ↔ GSTR-1 consistency
- → EGM filing by shipping line
🛃 Customs Importance
Why Customs Requires the Export Invoice
Verify Shipment
Confirms goods exported match invoice description, quantity and value declared.
Calculate Excise Duties
Invoice value forms the base for customs valuation, duty drawback calculations and export incentives.
Proof for Insurance Claims
Export invoice is the primary document for settling cargo insurance claims during transit.
Export Evidence
Used as export evidence for GST refund claims — links invoice to Shipping Bill to ICEGATE.
Regulatory Compliance
Checks export restrictions, permissions (SCOMET), origin country compliance and destination norms.
DBK & Incentives
Invoice details drive Duty Drawback (DBK), RoDTEP, and MEIS/SEIS benefit calculations.
📁 Document Pack
Documents Required Along with Export Invoice
1Commercial Invoice
2Packing List
3Shipping Bill
4Bill of Lading / AWB
5LUT Copy (RFD-11)
6IEC Certificate
7Certificate of Origin
8Insurance Policy
9E-Way Bill (if applicable)
10Export Order / P.O.
✅ Before Dispatch
Practical Checklist for Exporters
✅ Pre-Dispatch Compliance Checklist
✓LUT filed for current FY
✓Correct GSTIN on invoice
✓Correct IEC Number
✓Correct & specific HSN Code
✓Foreign buyer details complete
✓Country of destination mentioned
✓Incoterms clearly stated
✓Port of loading correct
✓LUT declaration on invoice
✓Authorized signature present
✓GSTR-1 reporting ready
✓Packing list prepared
✓Shipping bill reference tracked
✓Refund documentation maintained
❌ Avoid These
Common Invoice Mistakes by Exporters
Wrong GSTIN
Causes return mismatch — refund stuck and GST notices triggered.
Wrong Port Code
Shipping Bill & GSTR-1 mismatch — automatic IGST refund fails.
Missing LUT Declaration
Department treats supply as taxable — IGST demand + 18% interest raised.
Incorrect HSN Code
Customs objections, wrong duty drawback rate, export incentive loss.
Shipping Bill Not Linked
GST refund gets permanently stuck — manual intervention required.
Invoice Value Mismatch
Invoice ≠ Shipping Bill ≠ GSTR-1 leads to refund rejection or audit queries.
Missed Day 1 or Day 2? Catch Up Now
Day 1 — Export Ecosystem & IEC Basics · Day 2 — Export Under GST: IGST vs LUT · Rule 96A
🎬 Instagram Reel
Day 3 Video Summary
📱
Instagram Reel — Day 3 · Export Tax Invoice Under GST
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⚠️ Disclaimer
The content shared on this channel is purely for educational purposes. As a Chartered Accountant, I strive to provide accurate and insightful information related to GST, Income Tax, Accounting, and Tax Planning. However, please note that the content should not be considered as professional advice or a substitute for personalized consultation. For specific matters, please consult a qualified professional.
The content shared on this channel is purely for educational purposes. As a Chartered Accountant, I strive to provide accurate and insightful information related to GST, Income Tax, Accounting, and Tax Planning. However, please note that the content should not be considered as professional advice or a substitute for personalized consultation. For specific matters, please consult a qualified professional.
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