Sale of service via a foreign based service aggregrator.

My company is selling technical services via a US based service provider aggregator.

The aggregator is responsible for

  1. billing the clients
  2. deducting its commission from the client payment and
  3. sending the remaining amount in USD to my bank in India.

The end clients till now are based in either US or EU

What amount should be filed in the GSTR1 returns by me?

The actual rupee value that finally lands in my bank OR

The equivalent rupee value of the dollar amount charged to the end client by the aggregator.

e.g. If the aggregator charges $100 to the clients deducts $5 and transfers $95 to my account. and the bank deposit's INR 7700(95*82-bank charges) in my account, Should I report income of 7700 on my GST or INR 8200/-

Note this is an export of services under LUT so no GST amount is payable the above is just for reporting purpose.
 

Replies (1)

Great question! For GSTR-1 reporting of export of services via a foreign aggregator, here's the key point:


What to report in GSTR-1?

  • You should report the full invoice value charged to the end client, i.e., the gross value before deducting the aggregator’s commission.


Explanation:

  • The export invoice value is the amount charged to the overseas customer, which in your example is $100.

  • GST law requires reporting actual transaction value of supply, which is the gross amount, not the net amount received.

  • The aggregator's commission is a separate supply by the aggregator to you (or charged separately), so you don’t reduce your invoice value by that commission.

  • So, for your export under LUT, report the equivalent rupee value of $100, converted as per the RBI notified exchange rate on the date of invoice or date of receipt (whichever is applicable).


Summary:

Scenario Amount to report in GSTR-1
Invoice to client $100 (convert to INR using applicable rate)
Amount received $95 (after $5 commission deducted)
Bank credited INR ₹7700 (after bank charges)

You report ₹8200 (say, $100 × 82) — the gross value invoiced, not ₹7700.


Additional tips:

  • Maintain documentation of invoice and payment details.

  • Report export under LUT and zero-rated supplies.

  • If aggregator issues you any commission invoices, treat those separately in your books.


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