TaxTMI 
TaxTMI 
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?
GST Liability In Case Of Intermediary Services To Foreign Company for which payment received in foreign currency?
11 Dec 2018 
12 Replies 
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Time of supply determines exchange rate for GST on foreign-currency receipts, invoice date fixes taxable value.
The applicable exchange rate for GST valuation of foreign-currency receipts is determined by the time of supply: if the invoice is issued within the prescribed period, the invoice date fixes the exchange rate for the taxable value; if not, the date of provision of service governs, and if neither applies the date of receipt in books is used. Advances are provisional and do not constitute payment for exchange-rate determination; a hybrid application of different exchange rates to the same service is not permissible. (AI Summary)
The applicable exchange rate for GST valuation of foreign-currency receipts is determined by the time of supply: if the invoice is issued within the prescribed period, the invoice date fixes the exchange rate for the taxable value; if not, the date of provision of service governs, and if neither applies the date of receipt in books is used. Advances are provisional and do not constitute payment for exchange-rate determination; a hybrid application of different exchange rates to the same service is not permissible. (AI Summary)