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TMI BlogClarification relating to export of services sub-clause (iv) of the Section 2 (6) of the IGST Act 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the CBIC is being made applicable, mutatis mnutandis, in implementation of the MGST Act, 2017. Copy of the referred CBIC circular is attached herewith. This Trade Circular is clarificatory in nature. Difficulty if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Maharashtra (Rajeev Kumar Mital) Commissioner of State Tax, Maharashtra State, Mumbai Circular No. 202/14/2023-GST F.No. 20/06/22/2023-GST-CBEC Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing ****** New Delhi, the 27th October, 2023 To The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners / Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;" 3.2 One of the conditions mentioned in sub-clause (iv) of Section 2(6) of the IGST Act is that the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India. 3.3 Reference is invited to RBI's A.P. (DIR Series) Circular No.10 dated 11th July, 2022 regarding International Trade Settl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e correspondent bank of the partner country." 3.4 Reference is also invited to Para 2.52 (d) of chapter related to General Provisions Regarding Imports and Exports of the Foreign Trade Policy (FTP) 2023, which has come into force from 01.04.2023, which specifies that: Para 2.52 (d) Invoicing, payment and settlement of exports and imports is also permissible in INR subject to compliances as under RBI's A.P. (DIR Series) Circular No.10 dated 11th July, 2022. Accordingly, settlement of trade transactions in INR shall take place through the Special Rupee Vostro Accounts opened by AD banks in India as permitted under Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, in accordance to the following procedures: (i) In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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