Which exchange rate to be taken

This discussion clarifies the correct exchange rate to use when recording imported goods in India. For GST purposes, the rate notified by the CBIC under Section 14 of the Customs Act should be used. However, for accounting in your books, the prevailing exchange rate on the date of the transaction is generally applied as per accounting standards like AS 11. The difference arising from using these two rates should be accounted for and transferred to an 'Exchange Rate Difference' account.