GAIN ON FOREIGN EXCHANGE TRANSACTIONS

[KESHAV GROVER]

WHETHER GAIN ON FOREIGN EXCHANGE TRANSACTIONS WOULD FORM PART OF SUPPLY FOR EXPORTER? AND WHETHER IT IS SUPPLY FOR EXPORTER OR NOT?

[Nandan Khambete]

No. Supply happens and Value is fixed when Supply is made and tax invoice is generated. Forex fluctuation will not have any impact.

[Ganeshan Kalyani]

It will not form part of supply.

AI Summary

Gain on foreign exchange transactions not part of taxable supply; value fixed at invoice generation under GST.
Gain on foreign exchange transactions does not form part of the taxable value of an export supply because supply value is fixed when the supply is made and the tax invoice is generated; subsequent forex fluctuations do not alter the invoiced value and are excluded from export supply valuation for GST purposes.