1) Invoice Amount for GST Return
For the GST return, report the gross invoice amount before the deduction of any fees, as this is the actual value of the services provided to your client. Thus, the amount to report would be:
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INR 2,52,222.60 (calculated by multiplying the invoice amount of USD 3000 by the exchange rate of 84.0742).
This figure reflects the full export value before the payment gateway fee, which is just an intermediary cost and not directly associated with the client’s payment for your service.
2) Eligibility of GST on Payment Gateway Fee for ITC
Yes, the GST paid on the Payment Gateway Fee (INR 438.87) is eligible for Input Tax Credit (ITC) because the gateway fee is an expense incurred during the course of providing export services. You can claim this amount as ITC when filing your GST return.
3) Amount to Report in Income Tax Return
For income tax purposes, report the actual amount credited to your bank account as your professional income, as this is the amount that effectively represents the income received from the export service after all deductions:
- INR 2,49,345.58
This reflects the net income received after deducting the payment processor fee and related GST, aligning your reported income with the actual funds received.