Find
Circular 37/11/2018-GST clarifies that where the invoice value and the shipping bill value differ, the lower of the two is taken for the refund. Differences usually come from exchange rate or FOB versus CIF terms.
GST
Invoice value and shipping bill value differ
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Provisions
Circular 37/11/2018-GST; Rule 89(4), CGST Rules 2017
Analysis
If your invoice shows ₹10,40,000 on CIF terms and the shipping bill shows FOB of ₹10,00,000, the officer will take ₹10,00,000 as the zero-rated turnover. Use the lower value in your own computation so the claim does not get reduced later. Align invoicing terms with the shipping bill where you can.
Close
- Compare invoice and shipping bill values for every shipment
- Use the lower value in the zero-rated turnover
- Explain differences in a note with the claim
- Align future invoices with shipping bill terms
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