GST Liability In Case Of Intermediary Services To Foreign Company for which payment received in foreign currency?

[Shyam Agarwal]

Sir, Mr.A providing Intermediary services to foreign company received an Advance on 02.09.18 for (50% advance) 500$ at ₹ 71/- & paid GST on ₹ 35,500/- Now Mr.A completed a provision on 31.10.18 & also raised invoice on 31.10.18 for 1000$ (for full value) & Rate of $ on 31.10.18 were ₹ 74/-.Now as on 31.10.18,whether Mr.A is liable for GST on ₹ 37,000/-(i.e on 500$ x ₹ 74/-) or on ₹ 38,500 (i.e.on difference between 1000$xRs.74/- Less: ₹ 35,500/-value taken at the time of Advance?

AI Summary

GST Liability for Intermediary Services: Debate on Section 13, Rule 34, and Calculation Based on Advance or Full Invoice A discussion on GST liability for intermediary services to a foreign company, where payment is received in foreign currency, centers on whether GST should be calculated based on the advance payment or the full invoice amount. Various contributors, including experts, debate the applicability of Section 13 and Rule 34 of the CGST Act and Rules. The consensus is that GST should be paid based on the date of the invoice issuance if within the prescribed period, or the date of service provision if not. The discussion also touches on the definition of advance and payment, with emphasis on the date of supply as the determinant factor for GST calculation.