REPATRIATION OF EXPORT - CONVERTIBLE FOREIGN EXCHANGE, Customs - Exim - SEZ

[DR.MARIAPPAN GOVINDARAJAN]

Section 2(6)(iv) of IGST Act requires that the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India. In one case the exporter did not receive payment for his services but made 'Net Settlement Account' by which the dues of the importer and exporter are set off. Whether such action fulfills the conditions of Section 2(6)(iv) of IGST Act?

Posts / Replies

[KASTURI SETHI]

Dear Sir,

For offsetting of export proceeds, please go through para 2.74 of Hand Book Procedures, 2023. Special permission of RBI is required and Appendix-2 L is to be submitted.

[DR.MARIAPPAN GOVINDARAJAN]

Thank you very much sir.

[Shilpi Jain]

Settlement by way of netting off is a valid mode of payment. Will be regarded as compliance.