GST Liability for Receiving Payment in INR for Export Services

Baban (Accountant) (26 Points)

17 October 2024  

We are a new India based start-up focused on staff augmentation services. Recently, we provided a resource to a USA-based company, and we both agreed that payment for our services would be made in USD. Based on this agreement, we anticipated that we wouldn't be liable for tax (GST) under the LUT. We hold an Indian current account with Kotak Bank, but the sender used the Wise platform, and the funds were credited to our account in INR. Given this situation, are we now required to pay taxes to the government because we received the payment in INR? 

If the payment was agreed to be made in USD, does the currency in which we ultimately receive the funds affect our tax obligations?