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Foreign Inward Remittance Certificate - GST is applicable or not, Goods and Services Tax - GST

Issue Id: - 113331
Dated: 20-1-2018
By:- RAMAKRISHNA M
Foreign Inward Remittance Certificate - GST is applicable or not

  • Contents

Evening All,

I need to under whether GST will attract for "Foreign Inward Remittance Certificate" because if we get Sales commission for Imported Products in India, Banks will issue FIRC.

While raising Invoice to Foreign customers we cannot add GST in that invoice.

Please clarify.

regards,

Ramakrishna M

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Posts / Replies

Showing Replies 1 to 9 of 9 Records

1 Dated: 21-1-2018
By:- KASTURI SETHI

GST is applicable.


2 Dated: 21-1-2018
By:- Kishan Barai

A Foreign Inward Remittance Certificate (FIRC) is a document that acts as a testimonial for all inward remittances and payments received in India from abroad. So I would like to elaborate your query because FIRC would be generated if you export goods out of India & receive currency in India, but it cant come when goods imported in India for that payment has to be made, so where is the question of "While raising Invoice to Foreign customers we cannot add GST " that invoice. For exports, there is no GST


3 Dated: 21-1-2018
By:- KASTURI SETHI

Sh.Kishan Barai Ji,

In view of elaboration and clarification of query by you, I agree with you. Very well explained.


4 Dated: 21-1-2018
By:- Rajagopalan Ranganathan

Sir,

You are facilitating the sale of imported goods in India on commissioner basis. Though the commission is paid by your foreign customer in convertible foreign currency the service is provided by you within the taxable territory, that is India. Therefore you have to pay the gist on the commission earned. The same cannot be passed on to your foreign customer since you are the service provider and you are liable to pay the gst and your foreign customer is in no way concerned with that.


5 Dated: 22-1-2018
By:- KASTURI SETHI

In addition to above, it is further opined that mere receipt of foreign exchange does not qualify for export.


6 Dated: 22-1-2018
By:- RAMAKRISHNA M

Dear All,

Thanks for your opinions.

Once again brief this Business Flow for complete clarity and request your suggestions for the same.

We are Commission Agents for Italian Machinery suppliers.

Once Machinery is Purchased by the Indian Industrialists, we will be getting sales commission from Italian Companies.

In the above Business Flow, we are raising Invoices to the Italian companies in Euro and we will be getting Euro payments through Bank.

Also we are providing services in India for those Machineries, for which also we be paid by the Italian companies.

So Please clarify, is these transactions will attract GST, if yes what the rate of %. Also please confirm whether these will be under RCM

Request you to clarify .

Thanks & regards,

Ramakrishna.M


7 Dated: 22-1-2018
By:- MUKUND THAKKAR

In the above Business Flow, we are raising Invoices to the Italian companies in Euro and we will be getting Euro payments through Bank.

if raising invoices is not pertaining to export, which is meant for regularised your foregien income.

As per view of all expert is right and correct.


8 Dated: 22-1-2018
By:- KASTURI SETHI

If we go by the common knowledge, the place of enjoyment is in India. No export as per GST law or pre-GST law (Central Excise and Service Tax).


9 Dated: 22-1-2018
By:- MARIAPPAN GOVINDARAJAN

I endorse the views of Shri Rajagopalan.


1

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