Consideration received in INR can be considered as exports?

Hi All

Today we will discuss about eligibility of export

As per the definition of export under sec 2(6) of IGST Act, one of the condition for export 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,"

However, below are some exceptions where amount received in INR shall also be considered as export:

1.??? Amount received through special INR Vostro Account [1] as permitted by RBI

2.??? Through settlement of transaction where payable for imports has been set off with amount receivable from exports.

3. Receipt of payment by an intermediary like Paypal for and on behalf of the exporter would qualify as payment received by the exporter, and that the authorized dealers were permitted to allow receipts for export of goods or services to be received from a third party as per the RBI guidelines.

[1] where Rupee Vostro Accounts keep a foreign entity’s holdings in an Indian bank in Indian rupees. When an Indian importer wants to make a payment to a foreign trader in rupees, the amount will be credited to this Vostro account, and when an Indian exporter needs to be paid for supplying goods or services, this Vostro account will be debited, and the amount will be credited to the exporter’s account. As of the current date, Special Rupee Vostro accounts are permitted with 22 countries).

Thus, merely consideration received in INR for exports, are not always ineligible as export under GST Act, but the conclusions depends on various circumstances and it is advisable to see the eligibility on case to case basis.