Export is one of the major components of international trade. India is amongst the world’s top 20 nations with respect to the export of merchandise. With the increased liberalisation of trade by the Indian Government, there’s an abundant opportunity for establishing a profitable export business. Exports facilitate international trade and stimulate domestic economic activity by creating employment, production, and revenues. This article discusses the lack of clarity under GST laws on the issue whether Free on Board value (FOB) or Invoice value has to be adopted as the value of supply in case of Export of goods under GST regime. The article highlights on the effect of circulars and clarifications issued by the Government to clarify the ambiguity prevailed in the determination of the value of supply viz. whether FOB value or Invoice value has to be adopted as the value of supply in case of Export of goods.
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