Foreign Inward Remittance Certificate - GST is applicable or not

[RAMAKRISHNA M]

Evening All,

I need to under whether GST will attract for 'Foreign Inward Remittance Certificate' because if we get Sales commission for Imported Products in India, Banks will issue FIRC.

While raising Invoice to Foreign customers we cannot add GST in that invoice.

Please clarify.

regards,

Ramakrishna M

AI Summary

GST Applies to Sales Commissions on Imported Products in India, Even with Foreign Currency Payments; FIRC Not Exempt A discussion on whether GST applies to a Foreign Inward Remittance Certificate (FIRC) for sales commissions on imported products in India. Participants clarify that while FIRC documents inward remittances, GST is applicable on commissions earned within India, even if paid in foreign currency. The commission is considered a taxable service provided in India, and the responsibility to pay GST lies with the service provider, not the foreign customer. The discussion also touches on the distinction between exports and local services, noting that receipt of foreign exchange alone does not qualify as an export under GST law.