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

[Sadanand Bulbule]

For domestic transactions, though you can show values in USD, GST law (Section 31, CGST Act + Rule 34, CGST Rules) requires the taxable value and tax to be in INR, and FEMA generally restricts payments between Indian residents in foreign currency—so settlement should be in INR.

You may consult experts.

[YAGAY and SUN]

If youre supply to SEZ, then you can raise an Invoice in USD or any Free Convertible Currency (FCC) as per RBI Master Direction ready with SEZ Provisions, FEMA Laws, otherwise not.

[Shilpi Jain]

Pls give clear facts on what is the need to issue USD invoice for this when the transaction is within India

AI Summary

Invoice in USD for domestic sales: GST requires amounts in INR and FEMA bars foreign currency settlement except for SEZ supplies.
Domestic transactions may show USD prices, but GST requires the taxable value and tax to be stated and accounted for in INR, and FEMA generally prohibits foreign currency settlements between Indian residents; an exception permitting USD invoicing and settlement exists where the supply qualifies for SEZ or free convertible currency treatment under regulatory master directions.