INVOICE SHOWING GST

QUESTION

Dear Mr. Old Man,

• LC requests for 1 original commercial invoice.

LC value USD 30,000

Amount tolerance: 10/10

Bene:  XYZ LTD, Melbourne, Australia

Applicant: ABC, Melbourne, Australia

Goods description: 560kgs of xxx as per PI no 123 and other details as per Purchase contract 678.

DDP Melbourne, Australia

• Presented Commercial invoice

Reflects the goods description as per LC and Amount as USD 28000 then adds 10pct GST and total amount as USD 30800

The incoterm is mentioned along with the goods description on top of the invoice but not next to the total amount claimed.

In my view the presented invoice showing GST is acceptable for 2 reasons

1. Incoterm is DDP

2.The Purchase contract may be inclusive of the GST

Would you note discrepancy that Invoice shows GST?

Regards

Rohini

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ANSWER

Hi,

GST (Goods and services tax) is payable on most goods imported into Australia (taxable importations).

Since the trade term is DDP (Delivery Duty Paid) the beneficiary has paid GST, therefore the invoice includes GST.

According to ISBP 821 C1)b, when an LC  requires presentation of a “commercial invoice”, this will also be satisfied by the presentation of a document titled “invoice”, even when such document contains a statement that it has been issued for tax purposes.

In my opinion, the invoice showing GST is acceptable.

Best regards,

Mr. Old Man