Invoice Raising in USD Currency

[Hemlata Neem]

If we are purchasing and Selling in India .Can we raise an Invoice in USD to the Customer ?Is it allowed in GST and FEMA Act ?? Or is there any Contravention with other laws ??Plz provide the relevant supportings of the same in reference to section and all

AI Summary

Invoicing Domestic Sales in USD Risks GST Compliance; Section 31 Requires Tax Invoices and INR Valuation and Payment For domestic supplies GST law requires issuance of a tax invoice in the prescribed format and tax liabilities to be reported and paid in Indian rupees; Section 31 of the CGST Act sets out tax-invoice requirements and valuation rules require conversion to INR for assessment and payment. FEMA permits transactions and contracts in foreign currency for cross-border trade, but invoicing a domestic sale in USD can create compliance issues under GST (valuation, tax payment, returns) and RBI reporting/settlement requirements. In practice, exporters may invoice in USD; for domestic transactions convert and account in INR and obtain professional advice to ensure GST and FEMA compliance.