Getting payments from US for export of services

Import / Export 375 views 1 replies

I understood from the forum that the export of services (software consulting) is exempt from GST. To avail this, does the payment need to be done in foreign currency and converted by the local bank to Indian currency? I ask this because, one of my clients is insisting on paying me in INR from his foreign bank, instead of sending foreign currency. The invoice will be raised in foreign currency, though.

My question is that whether it will be treated as domestic transaction instead of foreign currency transaction since the currency is converted by the intermediary bank on the client side and INR is deposited into my account. Will this impact the GST exemption for the invoice?

I'll be grateful if someone can clarify. Thanks. 

Replies (1)
For a service to be considered as export of service, there should be a receipt of convertible foreign exchange. So if you receive the amount in INR, then it will not be treated as export of service. Accordingly, it is an interstate sale and gst shall be applicable.


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