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Export of service

madhu (article student) (21 Points)

22 April 2020

What is the effect of amendment in section 2(6) of IGST Act 2017 w. r. t.

" or in Indian rupees wherever permitted by Reserve bank of India".

what are the INR payments RBI has permitted ?

kindly provide your answer and also provide necessary sections, rules, notifications, circulars etc, for reference.

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5 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 22 April 2020

there is 5 conditions to be covered in "Export of Service"

BUT

not in the Export of Goods

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 22 April 2020

In short ,

for export of service > amount received in convertible foreign exchange

but for export of goods > there is no such condition . Sec 2(6) of IGST Act 2017

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 22 April 2020

One of the reason to put above clause under the Defination of Export Services is :
As supply of Services to Nepal or Bhutan in Indian rupees do not cover under the Defination of Export Services , So the council issued the Notification 42/2017 IGST (R) by giving exemption to such supplies . but after IGST Amendment Act 2018 being effective from 1/2/2019 (sec 2(I)) , it is being cover under export of Services even if realisation is Indian rupees .
The exemption on above Notifications being omitted by issuing Notification 2/2019 IGST (r) as it's being covered under the Defination of Export Services Now.

madhu (article student) (21 Points)
Replied 22 April 2020

For example
Is this covered under export of service if I have received payment against my service in INR from foreign country say Dubai, assuming that other four conditions are satisfied.

How to know whether particular INR payment is permitted by RBI or not?

kindly provide necessary sections, rules, notifications, circulars etc, for reference.