Lesser inward Remitance for an export Invoice

[Shan S]

What should be done if the inward remittance received is less than the invoice amount raised for the export of services?

Additionally, if a third-party processor fee is charged for remitting the payment, will this affect the amount to be received under the filed LUT for without payment of tax (GST)? Is there any interest payable under GST, or can the fee be shown with the receipt of the remittance receipt as

supporting documentation?

For example, if the invoice is $1,000, but the fee is $100, resulting in $900 being remitted to the bank and reflected in the FIRC, what should be done about the $100 that was not received? Does the requirement to receive the full invoice amount within one year apply to the $100 shortfall in this case?

AI Summary

Export payment shortfalls due to processor fees require documentation to substantiate realisation and preserve zero-rated GST treatment.
Where inward remittance is lower than the export invoice due to third-party processor deductions, exporters must treat exports as zero-rated supplies and substantiate realisation within the prescribed period using the FIRC, bank statements, and processor transaction breakups; processor fees do not automatically alter LUT filings but must be documented to avoid interest or penalty implications.