17 June 2021
My doubt is that we was generated a service invoice to a client abroad , we already took LUT. So issue invoice with 0% igst. The client remit payment through a payment app. But they payment was hit to bank in INR. We already file gstr 1 return as export services including the former invoice. But while gstr 3b we are requested to pay igst of the same invoice@18%( because the payment received in the form INR). Client is outside india so they are not agreed to pay the gst portion. So we decided to pay the gst portion on the behalf of client. Normally the entry for service is Account receivable a/c dr To output igst To service income Payment of igst Output gst dr To bank
I want to know the journal entry when the igst payment in case of services to the foreign client ( who makes pyment in INR) ,& we pay the gst instead of them.
23 June 2021
Hi experts, In those case we send invoice to foreign clients as export invoice and we file gstr1 as the invoice as exporr after that we received payment in INR. So gst professionals asked to pay igst portion of that invoice to the gst department. So the company bear the igst portion on filing gstr 3b on behalf of client then what will be the accounting entry in that case?
23 June 2021
As per export of services, the payment is must received in foreign currency otherwise it is not considered as an export as per GST Act. So payment received in these service are INR . So it is not considered as an export. So the igst on the same bear by the company.
24 June 2021
Outside india gst is not applicable, as per gst rule in India, service is not as export then charge igst. So what is the treatment in GST?
24 June 2021
For export of service there are many conditions to be fulfilled. If they are not then it is not exports but if pos is outside India then gst not applicable as it is outside it's jurisdiction. For more query you can mail me.
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