supply without consideration

[Madhavan iyengar]

A Company in india had exported services to its related party in US and it qualifies as export of services as it satisfies all condition under gst law for exports

The Indian company has made some TP ( transfer pricingadjustment ) ie increase of 10% in value for income tax purpose in relation to above as a result it has booked additional income There is no underlying supply nor receipt of consideration

Query: How to deal with this transaction under GST

AI Summary

GST Impact Debate: Transfer Pricing Adjustment on Export Services Lacks Actual Supply, No GST Obligation per Consensus. An Indian company exported services to a related US party, qualifying as an export under GST law. However, a 10% transfer pricing adjustment was made for income tax purposes, resulting in additional income without an actual supply or consideration. The discussion centers on whether this adjustment affects GST obligations. Some participants argue it should be treated as export realization with no GST impact, while others note the absence of foreign currency receipt means it doesn't qualify as export, questioning if it constitutes a supply. The consensus leans towards no GST impact due to lack of actual supply.