Zero IGST tax invoice a must

KATHMANDU: Nepal Rastra Bank (NRB) has urged the traders to ask for the zero integrated goods and services tax (IGST) invoice while importing goods from the manufacturer or sole agent of the manufacturer before releasing payment to the Indian exporter.

Amending the Unified Directives issued by the Foreign Exchange Management Department, the NRB has also asked the traders to include the letter of undertaking (LTU, bond number) along with the Letter of Credit documents.

“LTU, bond number must be mentioned in the tax invoice,” as per the directives. If the Indian exporter is from the Special Economic Zone (SEZ) of India, the aforementioned documents are not required. However, the Indian customs should have certified that the export is from the SEZ.

Readymade garment industries that import power loom clothes, yarn dyed and knitted clothes from India in recommendation of Garment Association Nepal also require zero IGST invoice, as per the directives of NRB.