GST on exchange rate flutuation gain

[Kaustubh Karandikar]

Against supply of services for export, the amount is received by the supplier in foreign currency. There is a gain in this transaction to the supplier due to exchange rate fluctuation. Is the supplier liable to pay GST on the gain due to exchange fluctuation? If no under which provisions?

AI Summary

GST Not Applicable on Exchange Rate Gains for Export Services, Citing CGST Rule 34 and Form 9C Reconciliation A discussion in a forum addressed whether a supplier must pay GST on gains from exchange rate fluctuations when receiving foreign currency for export services. Four participants contributed. One cited CGST Rule 34, stating that GST is not applicable on such gains, as they are considered reconciliation items in Form 9C. Another participant agreed with this interpretation. A third participant reiterated that GST does not apply to exchange rate fluctuations. The fourth participant questioned whether such gains should be considered income under GST, similar to treatment under income tax, but concluded that GST is not applicable.