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Clarification on GST reporting for payment from foreign company received in INR
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....larification on GST reporting for payment from foreign company received in INR<br> Query (Issue) Started By: - Tushar Malik Dated:- 8-8-2025 Last Reply Date:- 14-8-2025 Goods and Services Tax - GST<br>Got 8 Replies<br>GST<br>I provided services to a foreign company (based in Malaysia) for: * Opening its Demat account in India, * Obtaining its PAN number in India, and * Assisting in filing it....
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....s 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 ....
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....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? Reply By Sadanand Bulbule: The Reply: The place of suppl....
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....y of subject services is related to Indian statutory regulations like DEMAT Account, PAN, ITR.This qualifies as " domestic service" and not export of service in terms of Section 2[6] of the IGST Act, 2017. In GSTR-1, it is to be declared in B2C or B2B column depending upon the GSTIN of the recipient, if any. Reply By KASTURI SETHI: The Reply: ....
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....I fully support the views of Sh.Sadanand Bulbule, Sir. It is not export of service. Place of supply is in India. Covered under Section 13 (8) (b) of IGST Act. It is B 2 B service. Reply By KASTURI SETHI: The Reply: Only receipt of payment in foreign exchange is not the only determinant factor. Place of supply is the determinant factor as already explained above. For parameters to qualify as ex....
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....port of service peruse the following :- EXTRACT OF SECTION 2(6) OF IGST ACT 6) "export of services" means the supply of any service when, - (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of servic....
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....e is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange [or in Indian rupees wherever permitted by the Reserve Bank of India]; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8; &....
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....nbsp; Reply By Shilpi Jain: The Reply: In this case the place of supply is outside India. It is not an intermediary services. Also just because the money is credited in your account in INR does not mean that forex has not been received. In this case, the foreign bank would have remitted the INR by converting the forex. It is as good as receipt of forex a....
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....nd there are decisions in this regard. Reply By Shilpi Jain: The Reply: If you wish to pay tax then show it as a domestic supply. Showing it as an export of service would mean that you are considering it as an export of service and have exported it with payment of tax. Reply By KASTURI SETHI: The Reply: None can pay tax on ones own volition. GST is required to be paid as per GST ....
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....laws Reply By Sadanand Bulbule: The Reply: Tax is not a figment of charity or donation. It has to be paid, even if one is unwilling to pay it. "Wish & will" has no place under taxation system. Reply By KALLESHAMURTHY MURTHY: The Reply: Well said by Sri Kasturi Sethi Ji and Sri Sadananda Bulbule Sir. Any tax payable must be in accordance with the provisions of the releva....
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....nt Acts and Rules framed thereunder. Any amount paid in the form of tax without a warrant cannot be assessed as tax.<br> Discussion Forum - Knowledge Sharing ....