Query Regarding GST, ITR Reporting, and Books of Account for Export of Services

[Vineet Kumar]

I am providing export of software development services to a client in the United States and have a few queries regarding GST and income tax compliance.

I provided services for the month of March 2026 and raised an invoice in USD on 31 March 2026. I reported this invoice in GSTR-1 on 5 April 2026, using the applicable RBI exchange rate for GST purposes.

The payment for this invoice was credited to my bank account on 24 April 2026.

While filing my Income Tax Return (ITR) for FY 2025-26, I noticed that the Annual Information Statement (AIS) reflects the turnover reported under GST, which includes the value of this March 2026 invoice.

My question is: since the payment for this invoice was actually received in April 2026 (FY 2026-27), should I include this March invoice as income in my ITR for FY 2025-26, or should it be reported in FY 2026-27 when the payment was received?

I also have a question regarding the maintenance of books of account. At present, I maintain only:

• The invoices issued to my client, and
• The FIRC/Bank advice received for inward remittances.

I have no employees or business partners and operate as an individual consultant. Is this sufficient, or am I required to maintain additional books of account? If so, what records should I maintain? Would you recommend using accounting software, or is maintaining proper records in Excel acceptable for a business of my size?

AI Summary

GST turnover timing and income-tax reporting for export invoices, with books-of-account requirements for individual service consultants The issues concern the income-tax reporting year for software development services exported to a United States client. The invoice for March 2026 services was raised on 31 March 2026, reported in GSTR-1 on 5 April 2026, and paid on 24 April 2026. The query asks whether the income belongs in FY 2025-26 based on the service period and invoice or FY 2026-27 based on receipt, especially because the Annual Information Statement reflects GST turnover. It also asks whether invoices and FIRC or bank advice are sufficient books and whether additional records or accounting software are required.