Supply to SEZ unit in USD

[Yatin Bhopi]

Dear expert

We are manufacturer and supplying goods to SEZ unit under LUT. One of our SEZ customer requested to supply goods in USD. Please let me know

1. Is this allowed

2. Are we need to raised GST invoice in USD.

If this is allowed please share circular \ Act \ Rules references

[PAWAN KUMAR]

Dear sir,

No such provision in GST Rules as per my understanding. You may issue gst tax invoice supported with other commercial invoice which currency of USD can be written.

[Yash Jain]

Sir,

For point no. 1: Yes, invoice can be raised in USD or any other freely convertible currency for export to SEZ. Refer para 4 (III) , of Foreign trade policy, please.

For point no. 2 : Yes, we need to raise get invoice in terms of sec 31, which should on face mention, " supply of goods meant for sez under bond/lut" Or by way of payment of igst.

[PAWAN KUMAR]

Dear Yash Ji,

Request to share the provisions for your understanding regarding issue of GST invoice in USD.

[Yash Jain]

Dear Sir,

Now in GST there no more exist concept of double Invoices i.e Commercial Invoice and GST Invoices.

Reason : If we register commerical Invoice with Customs and Give in GSTR return the Tax Invoice then there will be invoice mismatch.

The normal process what generally is followed is to mention USD in GST Invoice with Equivalent INR (2 Columns).

It will help to solve 2 purposes simultaneouly ie.

1. Bill Regularization Issues : A Bank will want GST Invoice and Not Commercial Invoice to Regularize the SEZ Bill (BRC In case we want to discharge our EPCG Obligation/Advance Authorization Obligation)

2. Only 1 Accounting Invoice : It would be simple to mention in narration or in reference only Details of Tax Invoices instead of mentioning the Details of Commerical invoice again in narration.

Regards

AI Summary

Invoice in foreign currency: GST invoices for SEZ supplies may be issued in foreign currency with INR equivalent for compliance.
Invoices for supplies to SEZ units may be issued in a freely convertible foreign currency, but the GST tax invoice must comply with Section 31. Common practice is to record the foreign currency amount on the GST tax invoice together with the equivalent amount in Indian rupees and to indicate that the supply is "meant for SEZ under bond/LUT" or show IGST payment, thereby avoiding invoice mismatches and meeting bank and customs regularisation requirements.