Payment recd in INR against export

[Kavita Sharma]

As per section !3(2), place of supply of service is outside India. Invoice raised was also in foreign currency. But payment recd in INR. My query is what will be the impact of this on GST and Input credit availability.

Regards

Kavita Sharma

[KASTURI SETHI]

When the goods are exported, these are to be treated as duty-paid(Now GST paid). Exported are not exempted goods. In pre-GST era, credit on inputs contained in finished goods exported was allowed, and it is allowed even now in GST-era. No adverse effect on GST and ITC, especially, in view of legal position that export to Nepal is at par with our countries now.

[Kishan Barai]

GST on Exports are Zero Rated, you can realize amount in INR via Vastro Account

[KASTURI SETHI]

Yes. I support the views of Sh.Kishan Barai, an expert.

[Kavita Sharma]

Payment recd via Vostro Account is ok, but in case the service recipient during his visit in India make the payment in INR, what will be the impact on GST and Input tax credit availability on such export.

Regards

Kavita Sharma

[Kishan Barai]

There would be Zero GST on exports of goods, even you paid at the time of purchasing goods you will be refunded GST Completely.

[MUKUND THAKKAR]

Payment recd via Vostro Account is ok, but in case the

service recipient during his visit in India make the payment in INR,

what will be the impact on GST and Input tax credit availability on such export.

if service is providing in India during his visit it is not treated as export service, you have to pay applicable CGST and SGST..

[KASTURI SETHI]

Sh.Mukund Thakkar Ji,

Yes, Sir. If performance/enjoyment of service is in India in any way/form/manner, the querist should not talk of export benefits.

AI Summary

Zero-rated exports retain input tax credit eligibility even when payment received in domestic currency via vostro account. Exports that qualify as zero-rated remain eligible for input tax credit even if payment is realised in domestic currency through mechanisms such as a vostro account; payment currency alone does not change zero-rating. If the service is performed or enjoyed in India, the supply is not an export and regular GST with central and state components applies, and export benefits including zero-rating do not apply.