Sale of Services to Overseas Place of Supply to Registered Customer
GST is destination based tax i.e consumption tax, which means tax will be levied where goods and services are consumed and will accrue to that state. The supply of goods or services or both when the supplier is located in India and the place of supply is outside India shall be treated to be a supply of goods or services or both in the course of inter-state trade or commerce.
Process of sale to a registered customer with overseas place of supply has been explained in this document.
Create a sales invoice
Choose the icon, enter Sales Invoice, and then choose the related link.
Select Customer on Sales Invoice header, GST customer type should be Registered.
Select G/L Account on Sales Invoice line. GST Group Code, HSN/SAC Code should not be blank on the G/L Account Card.
POS Out of India field on Sales Invoice header should be marked as True.
For example, there is a sales invoice for INR 10,000 and 18% IGST has to be charged on the invoice amount.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 IGST 1800
GL Entries for Intra-State Sale of services to overseas place of supply to registered customer, will be as following:
Particulars Amount Customer Account 11800 IGST Payable Account - 1800 Services Account - 10000