firm is sole proprietorship,
GST registration done in August -2017,
till now no GST return filed till now,
but it's not a issue.. return will be filed with late fees,
till July-2018 No Business i.e nill return,
now in August-2018 month,
1 sale invoice which is IGST (Egypt) sale,
seller given invoice in USD say 20,000 USD..,
no separate IGST shown in invoice,
commodity is (purchase tobacco leave from farmer and supply to Egypt)
now what is the tax treatment in GST
how to calculate USD to INR
selling date = dollar conversion..
give some advice .....
Firstly, for purchase, you are required to pay tax @ 5% under reverse charge mechanism.
Secondly, for sale, you are required to determine equivalent INR, which is 20000 x Exchange rate notification issued by CBEC prevailing on the date of issue of invoice. Suppose Taxable value= 20000 x 71= 14,20,000/-.
IGST @ 5% on 14,20,000/-.
Total Invoice=14,20,000+14,20,000 x 5%
You have to pay this IGST, which you may claim as refund later on.Another option is not paying IGST by filing LUT.
There are many more procedures to be followed.
CAclubindia
