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Journal entry in case of supply services to foreign client make payment in INR

This query is : Resolved 

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.

If POS of services is outside India then no need to pay gst

Charge IGST as expenses under taxes and duties.
Condition for export is receipt of money in foreign currency.

If POS is outside India and even it's not exports then also no gst since law not applicable outside india

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?

Tell those gst professionals that when pos is outside India gst is not applicable

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.

So I want to adjust the entry for igst paid by the company in those case. Please reply

Even if it is not export it will not have the benefit of refund. But since pos is outside India gst is not applicable

If you want to pass entry. Create expense and liability and pay off the liability

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?

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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