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 andSUN]

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

Domestic supplies invoiced in foreign currency: GST requires taxable value and tax in INR (Section 31, Rule 34) Domestic supplies may be priced in a foreign currency for informational purposes, but GST rules require the taxable value and tax to be expressed and recorded in Indian rupees (see Section 31, CGST Act and Rule 34, CGST Rules). Under FEMA, payments between residents generally must be settled in INR, so invoicing and receipt in USD for purely domestic transactions can raise compliance issues. An exception exists for transactions involving SEZs or permitted foreign-currency dealings under RBI/FEMA master directions, where invoicing in convertible foreign currency is allowed.