Gst - export invoice - foreign currency

Import / Export 9558 views 12 replies

H Krishna

Others

23 Points Joined July 2015

Hello,

I work for a foreign client and send invoices to them in USD and in Euros. I have applied for LUT in GST portal. So, I hope , I don't need to pay IGST and apply for refund later.

My questions are,

1. while filing monthly return (GSTR3B), what value should be put as Taxable value?

should I convert that to Indian Rupees based on current exchnage rates?

If I need to specify the foriegn currency amount , not sure how to put multiple currency values ( ex. 500 USD in one Invoice and 200 Euros in another invoice)

2. If I need to convert to Indian rupees, based on current exchange rates, there would be a difference when I actually get the payment, after 1 month,due to changes in forex rates. How to handle this?

I appreciate your time and help.

Thanks

Krishna

Replies (12)

CA Naveen Chand

Chartered Accountant

12739 Points Joined December 2016

YES PUT AMOUNTS IN INR

Vinod Babu

24196 Points Joined May 2018

To adjust the unadjusted forex gain/loss, pass a journal entry
Dr Party
Cr FOREX GAIN/LOSS

Forex gain/loss under indirect expenses.

Krishna

Manager - Genesis Tax Consultant

531 Points Joined March 2018

Difference of amount to be booked in Realised gain / Loss when you receive the payment, for GST now you have to convert the value to local currency, exchange rate to be taken basis on date of invoice.

Vinod Babu

24196 Points Joined May 2018

Yes you are right Sir.

H Krishna

Others

23 Points Joined July 2015

Thank you all.

H L Panwar

23 Points Joined October 2017

what is the GST effect on gain/loss

Amal A

GST Practitioner

46 Points Joined April 2008

I regularly manage few clients dealing in export of services & goods respectively.

It is advisable to follow the steps as below:

1. Raise Invoice in USD for client / customer.

2. In books, record same at INR on basis of forex rates declared fortnightly on the CBIC portal (cbic.gov.in; under Exchange Rate Notifications).

3. Declare INR value in GST returns (value as obtained in step 2 above).

4. On realisation of forex in bank, charge differential to Forex Gain/Loss A/c. (classified as Indirect Exps.)

Note:

No GST payable on any forex gain nor refundable on forex loss.

As per recent amendments, you can take actual/current forex conversion rate other than that declared by CBIC, however, since it is only a very very recent amendment, it is recommended to follow the prevailing practice and safeguard oneself from avoidable documentation.

If export is exempt (due to Bond / LUT) please mention same on the face of the Invoice.

vaishnavi

Accountant

23 Points Joined December 2008

We give invoice to foreign universities (commission invoice for intermediary services) charging IGST

As per IGST provision when intermediary service provider is located in India and service receipient is located outside India. POS place of supply is location of supplier but need to charge IGST.

Now my question is while filing GSTR-1 in which sheet invoice should be shown and what need to be selcted under POS

If POS is selected,place of supplier location then CGST and SGST need to charge.

So can we select other territory

Please help

Amal A

GST Practitioner

46 Points Joined April 2008

This concern is being consistently faced by intermediary service exporters. So far, the GSTN Teams have not addressed the issue. As a work around measure, we raise Invoices with IGST, however, pay CGST+SGST. After filing returns, we submit a letter with the Jurisdictional Officer (State/Centre/Both, as case may be) stating the difficulty. I am hoping to see a solution to this matter in Annual GSTRs