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

Exchange rate fluctuation gain not subject to GST; valuation uses exchange rate at time of supply and is reconciled.
Under GST invoice valuation, the exchange rate prevailing at the time of supply is used to determine taxable value; subsequent gains or losses from exchange rate fluctuation are reconciliation items and are not treated as separate GST-taxable supplies, and such gains are recorded in return reconciliations like Form GSTR-9C.