Export payments have the potential to be conducted in Indian Rupee (INR), subject to specific regulations established by the Reserve Bank of India (RBI).

These regulations delineate the conditions under which such transactions are permissible. For instance, RBI allows export transactions to be denominated in INR in certain cases, particularly for exports to countries with which India maintains bilateral trade agreements facilitating settlements in INR.

Exporters opting for INR transactions must ensure adherence to RBI guidelines, particularly regarding the timely repatriation of proceeds to India. Compliance necessitates meticulous documentation, encompassing export invoices, shipping records, and evidence of payment receipt.

Despite transactions being conducted in INR, exporters remain subject to foreign exchange regulations, encompassing reporting obligations and constraints on fund utilization. Additionally, exporters should prudently assess currency risk, recognizing that fluctuations in exchange rates could impact the value of received proceeds.

Section 3 (c) of FEMA prevents any person from receiving any payment from any person outside India except through authorized person. An authorised person under Section 2 (c) means an authorised dealer, money changer, off-shore banking unit or any other person for authorised under sub-section (1) of section 10 to deal in foreign exchange or foreign securities. 

Any person  contravening the provision of the  Act is liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the amount is not quantifiable, and where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues. However such contravention is compoundable.

Dear Client,

1. It is generally not permitted to receive payment from an overseas buyer for goods that are supplied and consumed within India. Such transactions are typically classified as “deemed exports” or domestic transactions and should follow local transaction protocols. However, there are specific exceptions and cases where this may be allowed under the Foreign Exchange Management Act (FEMA) and related regulations.
2. GST is applicable on the supply of goods within India, and the invoice must include the applicable GST. The rate and manner of GST application will depend on the nature of the goods and the applicable tax rates.
3. Such transactions are generally considered domestic supplies and should ideally be billed to an Indian entity unless specific conditions under FEMA and the GST Act are met.
4. Payments in foreign currency for domestic transactions are tightly regulated. The usual practice is to receive payments in Indian Rupees (INR) for domestic supplies, but there may be exceptions based on specific scenarios allowed by FEMA.
5. Foreign Exchange Management Act (FEMA) Regulations, FEMA governs all foreign exchange transactions in India, including receipt of payments in foreign currency for goods and services.
6. If such transactions have occurred in the past, it's essential to assess whether they comply with FEMA regulations and GST laws. Seek guidance from a legal expert specializing in FEMA and GST to review past transactions and ensure compliance. If non-compliance is detected, consider filing a voluntary disclosure with the Reserve Bank of India (RBI) and GST authorities to rectify the situation. Be prepared to pay any penalties or fines that may be imposed for non-compliance with FEMA and GST regulations.

Should you require any further clarification, please do not hesitate to contact us.

You can receive payment in foreign currency or Indian rupees 

2) Since physical delivery of the goods was from India to within India you have done the right thing by raising a GST invoice akin to any domestic sale.

In the export business, invoices can be prepared using any internationally recognised currency.

An export invoice is a document issued by a seller to an international buyer detailing the products or services sold, their quantities, prices, and other relevant information. It serves as a formal request for payment and is a crucial document in international trade and compliance.

 Exporters often prefer invoicing in the importers' currency to simplify transactions and accommodate the preferences of their international clients. It helps in avoiding currency exchange rate uncertainties and making transactions more transparent.

However it is not known that whether the online consultation services  through social media will be termed under export 

You can provide consultation services on emails etc for overseas customers and raise invoice to overseas buyer and charge in foreign currency 

2) the contract entered into with overseas customer for providing consultancy services 

3) proof of payment received in india in foreign currency 

Dear Client,

Yes, you can provide consultation services via email, WhatsApp, or phone to overseas customers and raise an invoice in USD. Under the Goods and Services Tax (GST) regime in India, export of services is considered a zero-rated supply. This means that the supply of services to an overseas customer is not subject to GST, but the supplier can claim input tax credit (ITC) on goods and services used for providing the export services. However, there are some conditions under the IGST act regarding the export of services that must be followed.

In order to prove the export of services, you need to maintain an export invoice, along with the description of services, the value of services, and currency (USD), Bank Realization Certificate (BRC) or Foreign Inward Remittance Certificate (FIRC) Issued by the bank confirming receipt of foreign exchange or INR against the export invoice, an export declaration as per the RBI guidelines and finally, a copy of the contract or agreement with the overseas client, detailing the services to be provided.

According to the RBI and FEMA guidelines, payment for the export of services can be received in INR under certain circumstances, such as, Payments received through Vostro/Nostro accounts maintained by foreign banks in India and Payments received from units located in Special Economic Zones (SEZs), even if in INR.

Maintain proper documentation, and consult with a legal or financial expert to ensure all regulatory requirements are met. Should you require any further clarification, please do not hesitate to contact us.