Circular No. 202/14/2023 – GST dated 27th October, 2023

Key Pointers –

• Clarification has been issued regarding admissibility of export remittances received in Special INR Vostro account, as permitted by RBI, for the purpose of consideration of supply of services to qualify as export of services as per the provisions of clause (6) of section 2 of the Integrated Goods & Services Tax Act, 2017.
• This has clarified that when the Indian exporters paid the export proceeds in INR from the Special Rupee Vostro Accounts of correspondent bank(s) of the partner trading country, then it shall be considered as it fulfills the conditions of sub-clause (iv) of clause (6) of section 2 of IGST Act, 2017, subject to the conditions in Foreign Trade Policy, 2023 & extant RBI Circulars.