Exchange rate for Export of Service in the invoice and while filling GSTR-1

[RevanthKumar Nettem]

In case of Export of Services under LUT without payment of tax.

What exchange rate we need to show, while raising an invoice? And While filling GSTR-1, what exchange rate should be considered for Conversion and Reporting INR value ?

[Raam Srinivasan Swaminathan Kalpathi]

This is specifically covered under Rule 34(2) of CGST Rules provided hereinbelow:

34. Rate of exchange of currency, other than Indian rupees, for determination of value.-(

(1) *****

(2) The rate of exchange for determination of value of taxable services shall be the applicable rate of exchange determined as per the generally accepted accounting principles for the date of time of supply of such services in terms of section 13 of the Act.]

Accordingly use the rate as prescribed under AS-11 which is usually the closing RBI rate. Depending on the number of transactions you may calibrate the rate on daily/ weekly/ fortnightly/ monthly also.  Thanks

[Ramanathan Seshan]

Dear sir,

You're absolutely right in referring to Rule 34(2) of the CGST Rules, and your interpretation aligns with current regulatory expectations. Let me break it down clearly for your confirmation and future reference:

✅ 1. Exchange Rate for Export of Services (Under LUT, Without Payment of Tax)

🔹 A. At the time of issuing invoice

• As per Rule 34(2) and Section 13 of the CGST Act, the exchange rate should be:

The rate as per the generally accepted accounting principles (GAAP), i.e., AS-11, on the date of time of supply of the service.

• AS-11 suggests using:
  • The closing rate, typically the RBI reference rate, or
  • An entity-specific rate consistent with its accounting policy, e.g., monthly average or daily rate, provided it’s used consistently and disclosed properly.

✅ So, on the invoice, you can use:

• The RBI closing rate on the date of invoice or time of supply, OR
• A company-approved rate if consistent with AS-11 policy.

🔹 B. While Filing GSTR-1 (Table 6A for Exports)

• The INR value to be reported in GSTR-1 (for export services under LUT) should be the same INR value as per your accounting books.
• Therefore, the exchange rate used in books (based on AS-11 or policy) should be used to convert and report in INR in GSTR-1.

⚠️ Important: Do not use customs exchange rates (used for goods) — these apply only for import/export of goods, not services.

🔍 Example

Suppose you raise an export invoice on 10th May 2025 for USD 1,000:

• RBI reference rate on 10th May: ₹83.00/USD
• Your company policy (per AS-11): Use daily closing rate

➡️ Invoice: USD 1,000 = ₹83,000

➡️ Books of account: ₹83,000

➡️ GSTR-1 filing (May, Table 6A): ₹83,000

✅ All consistent and compliant.

✅ Summary Checklist:

Use Case	Exchange Rate Basis	Currency
Invoice for Export of Services	AS-11 (e.g. RBI rate or policy-consistent rate)	INR (converted from foreign currency)
GSTR-1 Reporting	Same as accounting books (AS-11 compliant)	INR

Regards,

S Ram

AI Summary

Navigating GST Export Services: Rule 34(2) Clarifies Currency Conversion Using RBI Rates and Accounting Standards A discussion forum thread explores exchange rate determination for export services under GST regulations. Participants clarify that Rule 34(2) of CGST Rules mandates using generally accepted accounting principles (AS-11) for currency conversion. The recommended approach involves using RBI closing rates or consistent entity-specific rates when invoicing and reporting export services in GSTR-1, ensuring alignment between invoice, accounting records, and tax documentation.