Export of Services payments not received in foreign currency - Refund eligibility

[Krishnamurthy V]

Sir,

For export of services, one of the conditions stipulate that payments are to be received in convertible foreign currency. Suppose, export of services done through online, payments are received through Paypal, deposited in servie providers' Bank account in Indian currency, whether ITC refund can be claimed in this case. Please advice.

AI Summary

Export proceeds in domestic currency: ITC refund may be claimed for export of services where RBI permits realization.
Export of services ordinarily requires realization of export proceeds in a freely convertible currency, but invoicing in Indian rupees is permitted; an IGST amendment allows realization in rupees where the Reserve Bank authorises it. Consequently, ITC refund for exported services may be claimed when receipt in domestic currency complies with RBI and foreign trade policy conditions and permitted routing such as specified vostro accounts.