GST Refund Clarification

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Venkatraman Iyer

13 Points Posted on 31 October 2020

Hello All, Please can someone clarify on the following scenario, which is purely an example.

I am a Wholly Owned Indian Subsidiary of a Foreign Registered Company. I am a Development Center and provide services for my Foreign Holding Company who in turn settles my expenses based on inter company invoices generated by myself. I do not submit any claim for Export Incentives etc. The Holding Company remits money in foreign currency via an Exchange House, so my Banker receives money in Indian Rupees and there is foreign currency conversion and exchange rate applied on the FIRC document.

Based on the above information can I submit a GST Refund application. Or will the application be rejected.

Please can someone confirm.

Regards

Ganesh Aiyar

Replies (2)

Quick Summary

This discussion seeks clarification on whether a wholly-owned Indian subsidiary, acting as a development centre for its foreign holding company, can claim a GST refund. The subsidiary provides services and receives payment in INR after foreign currency conversion, with FIRC documents reflecting the exchange rate. While one response suggests applying if other conditions are met, another strongly advises against it, predicting rejection.

CA. Heet Shah

Tax Consultant & Practitioner

6195 Points Posted on 31 October 2020

Originally posted by : Venkatraman Iyer
	Hello All, Please can someone clarify on the following scenario, which is purely an example. I am a Wholly Owned Indian Subsidiary of a Foreign Registered Company. I am a Development Center and provide services for my Foreign Holding Company who in turn settles my expenses based on inter company invoices generated by myself. I do not submit any claim for Export Incentives etc. The Holding Company remits money in foreign currency via an Exchange House, so my Banker receives money in Indian Rupees and there is foreign currency conversion and exchange rate applied on the FIRC document. Based on the above information can I submit a GST Refund application. Or will the application be rejected. Please can someone confirm. Regards Ganesh Aiyar