Clarification on GST reporting for payment from foreign company received in INR

[Tushar Malik]

I provided services to a foreign company (based in Malaysia) for:

1. Opening its Demat account in India,
2. Obtaining its PAN number in India, and
3. Assisting in filing its ITR in India.

The payment was directly received in my bank account from the foreign company in INR. The bank deducted some service charges on this payment. I do not have any proof that the payment was received in foreign currency, and I also do not know the actual currency in which it was sent from their side.

Since I do not have any such proof, I am treating this as an Indian payment. Even I do not want to claim any benefit related to export of service and I am ready to pay GST. However, I need clarification on the following points:

• In GSTR-1, should I still show this as export of service or as a normal domestic taxable supply?

• If it is not considered export of service, what would be the appropriate reporting column?

AI Summary

GST on services to foreign company paid in INR is domestic supply under Section 2(6) of IGST Act Services provided to a foreign company involving Indian statutory matters were paid in Indian rupees with no proof of foreign currency receipt. The service provider sought clarification on GST reporting as export or domestic supply. Experts clarified that the place of supply is India due to the nature of services, making it a domestic supply under GST law, not export of service. Export of service requires the place of supply to be outside India and payment in convertible foreign exchange or permitted Indian rupees. Payment in INR alone does not determine export status; the place of supply governs classification. If tax is to be paid voluntarily, the supply should be reported as domestic. GST liability arises as per law, and tax cannot be paid or withheld at will. Reporting should be in the appropriate domestic supply section of GSTR-1 based on recipient details.