1) Either you create an invoice with USD and INR (in different columns) No such provision in the GST rules as I understand it. You can issue a TPS tax invoice that is supported with another commercial invoice whose currency can be written in USD. Therefore, a supplier can issue a tax invoice in foreign currency, which is accompanied by a tax invoice in Indian rupees or the same tax invoice in foreign currency has a separate column with amounts in Indian rupees, the value of which is determined according to the above rule. This is essential to report tax invoice information on GST returns and to make it easier for the recipient to claim the GST pre-tax credit specified in the tax invoice. Reason: If we register the commercial invoice with customs and return the tax invoice in GSTR, there will be a non-match of the invoice. Request for disclosure of the terms of your agreement regarding the issuance of the GST invoice in USD. If the beneficiary is entitled to a full input tax credit, the value shown on the invoice is deemed to be the disclosed value of the goods or services. We note that the Government of India, in exercising the powers conferred by section 14 of the Customs Act 1962, has from time to time issued a notice to determine the exchange rate of foreign currency translation for imported and exported goods. In this context, we read the applicant`s letter dated 23.12.2019, in which he pointed out to the authority that the foreign currency price in the contract generally covers the imported content of the material used in the construction of a power plant in India, as Indian companies have generally imported goods, making foreign currency payments to their supplier, in turn, the customer`s foreign currency. Thus, I would like to point out that, in the present case, the exchange rate of the imported goods applies in so far as the foreign currency price in the contract is intended to cover the imported contents of the equipment used as intended. 2.

Only 1 accounting invoice: It would be easy to mention only the details of the tax invoices in the narrative or reference instead of mentioning the details of the commercial invoice again in the narrative. The foreign company cannot claim bids until it is registered in India. In such cases, the customer may ask you to view the invoice on behalf of the foreign buyer. It will only inform the party. This tent boils down to an export transaction for which you should have an export-import code. What is the merchandise and what is the invoice amount? You cannot get dollars through banking channels unless you export abroad and have an export-import code. For point #2: Yes, we need to prepare an invoice within the meaning of Article 31, which should mention on the front: “Delivery of goods intended for sez under warranty / LUT” Or by payment of igst. Under the GST Act, there are no restrictions on the use of currency in tax invoices issued by a registrant. The existence of Rule 34 of the CGST Rules 2017, which sets the exchange rate of the foreign currency to be used to determine the delivery value, confirms the fact that a tax invoice can be issued in any currency other than the Indian rupee. (a) before or at the time of delivery, if that deduction has been duly recorded on the invoice issued for delivery; and “Usually, the foreign currency price is in the contract to cover the imported contents of the material used in the construction of a power plant in India, where Indian companies have usually imported goods, make a payment in foreign currency to their supplier, in turn in the customer`s foreign currency.” For point #1: Yes, the invoice can be charged in USD or any other freely convertible currency for export to the SEZ. See paragraph 4(III) of the Foreign Trade Policy, please. (i) such a discount is determined in the context of a contract concluded at or before the time of delivery and specifically linked to the corresponding invoices; and 2) You can create separate invoices, one with INR for tax purposes and others in USD for customers with the same date and invoice number Love Priyanka Joshi 1.

One can issue foreign currency invoices to Indian and foreign customers, but you cannot demand/force foreign currency payment from Indian customers 2. What is the purpose of issuing a foreign currency invoice to Indian customers where you cannot demand/force payment in foreign currency? You can call me on my mobile phone if necessary to (b) clarify the applicability of a notice issued under the provisions of this Act, in which case you may receive payment in USD, but the place of delivery is still in India and not outside, so you are not eligible for any type of exemption. Therefore, GST is applicable and the same must be charged by your foreign customer. Note: It looks like you have disabled Javascript in your browser. To leave a comment on this article, please write this code with your comment: 85a52df45a9844fb68c76a340c2eb1d8 6. In this context, the relevant legislation is reproduced as follows: (f) Whether the applicant should be included in Article 31 of the Regulation. Residual method for determining the value of the supply of goods or services, or both.- Where the value of the supply of goods or services, or both, cannot be determined in accordance with Rules 27 to 30, it shall be determined by appropriate means consistent with the principles and general provisions of Section 15 and the provisions of this Chapter: We and our customers are both in India. The customer wishes to place an order for the delivery of material to the Indian port, from where he will export it to another country. Its order value is given in USD.

We have to charge him in USD and he will only make the payment in USD. Yes, you have to charge GST to your foreign customer based on where the delivery location will be in India, and they cannot get an ITC. (e) Determination of tax liability for goods or services or both Rule 34 of the 2017 CGST Rules is set out below: 4. Since the applicant requested a preliminary decision on the valuation issue, the notification filed by the applicant was therefore granted within the meaning of Article 97, paragraph 2(c) of the Act. As a result, the hearing was scheduled for 05.11.2019, in which the applicant`s deputy head Shri Deepak Agarwal participated. However, a letter dated 06.12.2019 has been written to the applicant requesting him to communicate the power to regulate the provisions of the Exchange Regulation Act with regard to domestic settlements in foreign currencies.