Export of service and GST return issue

Dear Sir,

Here are my replies to your queries:

1) Regarding Income:  As you mentioned that your course price is $97, so in that case whenever anybody is purchasing any course from your website will pay $97 and it implicitly means that you are selling that course to that customer at $97 and your income will be $97.

If a customer is paying $97 for your course, it means that will be your income. And the amount deducted by either paypal or the website as commission will be your expenses. Meaning thereby your net income will be $ 92 ($97-$5).

2) GST Return Filing: For filing the GST return you are not required to take the exchange rate of the future date. As your income will accrue on the date when the product is sold and payment is received by the website or paypal. So, accordingly you have to consider the exchange rate of the day when the product is sold irrespective of the fact that when you are receiving the actual payments. 

3) GST : In case the courses are purchased by any customer in India in that case it will not be considered as export and you are required to pay the GST on the same by calculating the amount of GST by considering $97 as inclusive of GST.

Hope your all the queries are resolved.

Let me know if you have any other query!

Thanks and Regards 

Divya Chugh  

Hi

Your sales shall be recorded at $97. $5 shall be expense. 

Yes, you can export under LUT.

Further, if PayPal is your payment gateway, please report your GSTIN to them. They will also charge GST on their commission/charges. You can claim ITC for the same.

Check for the debit card processing fees. If the supplier is outside India, you would be required to pay GST on reverse charge basis and claim it's ITC.

You need to report the transaction in Rupee as per the rate of exchange on the date of remittance and not on receiving the payment. The forex gain/loss shall be accounted and treated for income tax purposes. It shall have no impact on GST.

For sale to Indian buyers, you need to charge 18% GST. It could be calculated by reverse calculation. I hope you can identify the Indian buyers from the details available on the portal.

We may discuss the issues further.

Please find correction below.. mistaken unintentionally:

You need to report the transaction in Rupee as per the rate of exchange on the date of invoice and not on receiving the payment. The forex gain/loss shall be accounted and treated for income tax purposes. It shall have no impact on GST.

Dear Sir,

Hope you are doing well !!

--You need to show sales at $97 and expenses shall be $5.

--For Export supplies, two options are available either You can get LUT and supply without IGST or you can supply with IGST and later claim a refund of the tax paid.

--The exchange rate should be considered as on date of remittance.

--Yes, you need to charge GST@18% on sale to Indian buyers.

You simply need to do reverse calculation of GST according to the amount so received.

It is advisable to take a phone consultation for detailed discussion.

Hello,

Regarding the mi-match of amount from FIRC, as per my information, all the bifurcations are there in FIRC or Foreign Inward Transaction Advise. 

Very rightly mentioned for recording Sales at $97 and Expenses for $5.

You will have to declare the service provided in Rupees as per the rate of exchange on the date of remittance. Forex Gain/Loss due to these transactions will have to be accounted for in the books.

Yes, you will have to charge 18% on services provided to Indian customers. With the exchange rate and reverse calculation of GST(assuming $97 as inclusive of GST), you can declare this transaction as regular domestic supplies and remit the due GST.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani