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

Supply without consideration: whether a transfer pricing adjustment that creates accrued income is a taxable supply under GST.
Whether a transfer pricing adjustment that creates accrued income without any fresh underlying supply or receipt in convertible foreign exchange constitutes a separate taxable supply or an export of services. The conflict centres on Schedule I treatment of supplies without consideration to related parties, the statutory export conditions requiring receipt in convertible foreign exchange and distinct establishment tests, and whether a retrospective TP adjustment is a standalone taxable event or an accounting allocation to an earlier supply.