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?

[SANJAY JAIN]

As per CGST Rule34, the exchange rate prevailing at the time of supply will be used for tax invoice purpose. There is no liability to pay the GST on any gain due to exchange rate fluctuation. Such exchange rate gain/loss will be a reconciliation items in Form 9C

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sanjay.

[Ganeshan Kalyani]

GST is not applicable on exchange rate fluctuation.

[ARPITHA SS]

Sir Rule 34 states only about the valuation of the supply related to export which is related to foreign currency transaction.

but this case is excess of the collection out of the supply made due to currency rate fluctuation.

As per income tax its other income or indirect income and we pay tax for the same. where as in GST also it will be the income only know? we need not to pay tax on that??

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.