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TMI BlogRealization of Export service proceeds in INRX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir/Madam, I hope you are well and keeping safe. Case : A company is into 100% export of services to USA, but they are receiving the proceeds in INR. Banker is providing MT 103 form as proof of foreign inward remittance. My Query : 1. To constitute the definition of export - should the export proceeds to be received in foreign currency or INR? 2. As the export received in INR in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case are we liable to pay GST @ 18 % ? 3. Whether MT 103 can be used as FIRC for GST refunds on accumulated ITC. Looking forward for your valuable suggestions Thanks Regards, Gururaj - Reply By KASTURI SETHI - The Reply = 1. It is not mandatory. Go through C.B.I. C. Circular No. 88/07/2019-GST, dated 1-2-2019 . 2. No. 3. Should be accepted. - Reply By gururaj Bhat - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = Sir, thank you for your valuable suggestion. Sir in this case the amount is not transferred through vostro account. The customer is converting USD to INR and transferring the same to Indian Account. Please suggest. - Reply By KASTURI SETHI - The Reply = As per Board's circular, export proceeds are required to be received through Vostro Account. - Reply By gururaj Bhat - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Thank you sir for clarification. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Proceeds of export is to be received in convertible foreign currency or in Indian Rupee where ever permitted by RBI according to FEMA. No gst is payable on such income. - Reply By YAGAY andSUN - The Reply = FIRC cannot be used for getting GST refunds. You need to get the FIRC converted into BRC. - R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply By KASTURI SETHI - The Reply = The querist may also read the following :- Rule 89(2)(c) of CGST Rules, 2017 as amended. c) a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of the export of services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular No. 125/44/2019-GST, dated 18-11-2019 48. It is clarified that the realization of consideration in convertible foreign exchange, or in Indian rupees wherever permitted by Reserve Bank of India, is one of the conditions for export of services. In case of export of goods, realization of consideration is not a pre-condition. In rule 89(2) of the CGST Rules , a statement contai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the number and date of invoices and the relevant Bank Realization Certificates (BRC) or Foreign Inward Remittance Certificates (FIRC) is required in case of export of services whereas, in case of export of goods, a statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices is required to be submitted along with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim for refund. It is therefore clarified that insistence on proof of realization of export proceeds for processing of refund claims related to export of goods has not been envisaged in the law and should not be insisted upon. - Reply By gururaj Bhat - The Reply = Thank you sir, for further clarifications. - Reply By Sagar Pomal - The Reply = As it is via Vostro account, will FIRC be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable? What other documents we can request from bank to have it as a proof of export of services? Also, one of our foreign client is paying via TransferWise, which does the transfer from their INR account in India and it is not a Vostro account. Is there anything we can do to show it as export? Thank you - Realization of Export service proceeds in INR - Query Started By: - gururaj Bhat Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed:- 1-5-2020 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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