• Doubt in GST invoice format for international client (Software Company)

Hi everyone,
I am running software company.
i have now GST number from this month and also applied for LUT.
so now we are generating invoices for India client with GST and for international clients without GST.

but my doubts are bellow

doubt no 1 =>

i am generating invoice for international clients in their currency and also create separate invoice in Indian currency with same invoice number for GST filling. so far once i got the payment of international client i was also generating its invoice in INR.

but now its month end today. i have generated invoices today but i dont know exact how much i will receive after currency conversion. it always convert automatic by bank, paypal etc. so i cant predict it in advance. so how can i generate INR invoice for that International invoice in advance?

is it ok to generate invoice with invoice date's live currency conversion rate? 
what happen if both amount will be different?


doubt no 2 => 

do i have to add anything related to LUT in these kind of invoices?
Asked 13 days ago in GST

Dear SIr,

 

As per Rule 34 of CGST Rules 2017, Foreign Exchange Rate for Determination of Value, The rate of exchange for determination of value of taxable services shall be the applicable rate of exchange determined as per the generally accepted accounting principles for the date of time of supply of such services in terms of section 13 of the Act. In simple words, the rate of exchange prevailing on the date of supply sahll be the rate of initial recognition in INR. 

Later on, if the payment is received in the same F.Y. then you can enter the amount so recieved in the financial statements of current year. If however payment is recieved in next financial year, then on closing the financial statements that receivable will be recorded at the closing rate and subsequently when payment is recieved the exchange difference arising out of it shall be debited or credited to P&L A/c as the case may be.

The above treatment is as per the FRF applicable to your entity.

 

Yes, you will have to mention the type of export (example: export under LUT) in the invoice that you may prepare for clients outside india.

 

 

Thanks & Regards

Shiv kumar Agarwal

Shiv Kumar Agarwal
CA, Delhi
385 Answers
74 Consultations

5.0 on 5.0

Hi

As per GST law, A person supplying the services of exchange of foreign currency may exercise option to ascertain value in terms of 32(2)b for a financial Year.

value of supply will be calculated by the service supplier. GST on Foreign Exchange Conversion will be determined based on the value of supply.

Generally, As per GST Act 2017, the invoice value will be the taxable value and tax being computed as a percentage of the value of supply of goods and services. However, in respect of some specific businesses, the GST rules prescribe different rules for valuation. These valuation methods are optional. The supplier may, at his option, opt for valuation based on the normal valuation rules as well.

Rule 32 of CGST Rules 2017 regulates and monitors the value of the supply of services, whilst dealing with foreign Exchange.

 

Rule  34 of CGST Rules

For Goods The rate of exchange for determination of value of taxable goods shall be the applicable rate of exchange as notified by the CBIC under section 14 of the Customs Act, 1962 for the date of time of supply of such goods, as determined under section 12 of the CGST Act.

Yes you need specifically mention In invoices export under LUT.

 

Karishma Chhajer
CA, Jodhpur
1846 Answers
13 Consultations

5.0 on 5.0

You have to take the INR amount on the date on which the invoice is raised. This amount will be shown in GST return and not the amount collected.  GST is required to be paid on raising of invoice and not on collection of payment. Raising a separate invoice in INR is not required.

The differential amount on date of raising invoice and receipt of payment will be booked as foreign exchange gain or loss.

Nothing related to LUT is to be added in the invoice.

 

Ruchi Goel Anchal
CA, Gurgaon
214 Answers
1 Consultation

5.0 on 5.0

You need to generate only one invoice in USD and also mention the Indian rate as on today and later when you receive the payment the difference amount would go into foreign exchange gain loss.

If you need I can assist you with your accounts and tax.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

Hello,

 

1. You need to generate only one invoice mentioning the amount in both currencies. The rate of exchange would be the applicable rate on the date of time of supply of such services. The difference amount due to foreign exchange fluctuation would be declared as foreign exchange gain or loss.

2. Yes, you need to mention Export under LUT on the invoice.

I hope this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

Hi,

 

As per CGST Rule 34, the exchange rate prevailing at the time of supply will be used for tax invoice purpose. Exchange rate gain/loss will be a reconciliation items in Form 9C.

 

Yes, you need to mention on the top of the invoice that

" Supply made for export under LUT without payment of IGST".

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

-The rate of exchange for the determination of the value of taxable goods or services or both shall be the applicable reference rate for that currency as determined by the Reserve Bank of India on the date of time of supply in respect of such supply in terms of section 12 or, as the case may be, section 13 of the Act.

 

- Yes, you need to mention that the supply made for export under LUT.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

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