Foreign remittance from our client for Co Working Space situated in Delhi

• GST Treatment: Charging CGST + SGST (18%) is correct. Because the co-working space is in Delhi, the Place of Supply is Delhi under Section 12(3)(a) of the IGST Act. It does not qualify as an Export of Service.

• Additional Compliances: Obtain FIRCs from your bank for foreign remittances, map the correct RBI Purpose Code with your bank, and convert foreign currency invoices to INR using CBIC exchange rates on the date of invoice.

Sir thanks for reply, can you elaborately define  ADDITIONAL COMPLIANCES - so that I can understand easily - Thanks in advance 

Charging CGST + SGST looks right here. This is not an export of services. A service tied to immovable property (space in Delhi) has its place of supply where the property is, so with a Delhi supplier it is an intra-state supply. Rate for co-working / licence to use commercial space is normally 18%.

Two things to check:
1) Invoice timing. One invoice a year is risky unless the agreement really has a single annual due date. If the fee is monthly or quarterly, GST falls due per period, so late invoicing can mean late GST and interest.
2) Foreign remittance side. Payment should come through the bank in foreign currency with the invoice details, so the bank can issue the inward remittance advice. Keep the agreement and invoices on file.

If the US company has no GSTIN, show its name and address on the invoice and leave the recipient GSTIN blank. The fact that its staff use the space does not change your GST treatment.

This [place of supply rules guide](https://taxgarden.in/blog/gst-on-export-of-services-zero-rated-place-of-supply-india-2026) explains why services linked to immovable property stay taxable in India.

Adding to the replies above on the "additional compliances" part, in plain terms:

1. Route the receipt through your regular bank (authorised dealer). The US company should pay by wire against your invoice, quoting the invoice number. For each receipt the bank will issue an inward remittance advice (older term FIRC). Keep these with the agreement and invoices - they are your proof that the money came through proper banking channels, which is what FEMA expects.

2. Purpose code. When the money lands, your bank will ask what it is for and map an RBI purpose code (business services / rental or leasing category). Just describe the service accurately - licence fee for co-working space - and the bank maps it. Wrong or vague purpose codes are the most common reason foreign receipts get held up.

3. Currency conversion for GST. Note that for services, Rule 34(2) of the CGST Rules uses the exchange rate determined as per generally accepted accounting principles on the date of time of supply - so use the rate you book consistently in your accounts (typically the RBI reference rate), not the customs-notified rate, which applies to goods. Pay GST on that INR value. Simpler option: invoice in INR and let the US company remit the equivalent. That avoids differences between the bank's conversion rate and your invoice rate.

4. No LUT, no export paperwork. Because this is not an export of services - the place of supply is Delhi under Section 12(3) of the IGST Act since the property is here - you do not file an LUT and you do not treat it as zero-rated. Keep charging 18% CGST + SGST as you are doing.

That, plus the invoice-timing point made above (annual invoicing is risky unless the agreement really has a single annual due date), is the full compliance picture for this arrangement.