Question ID :
31639
GST on service to foreign client in India
A Gujrat based registered person supplying technical consultancy service to a Shrilankan company (which has its parental holding co. in India) through personal visit in Bombay, He has received Purchase order from Shrilanka and will also get his fees in Dollar. My query is that-
1. What is the place of supply ..?
2. How he should raise the bill ..?
3. Is it called export of service ...?
Posted by
Satyendra Bhana
on
May 18, 2018
Filed Under
GST
Export of Services” as defined under Section 2 (6) of IGST Act, 2017means the supply of any service, when –
the supplier of service is located in India,
the recipient of service is located outside India,
the place of supply of service is outside India,
the payment for such service has been received by the supplier of service in convertible foreign exchange, and
the supplier of service and the recipient of service are not merely establishments of a distinct person
To my mind place of suppy is not out of india and hence it is not export service under GST.
Posted by
CA. SATISH CHAND GARG on
May 21, 2018
Answer ID :
68666
Referring to Section 13 being provider (Gujarat Co or GC) and receiver (Srilankan Company or SC) are outside India.
As per Section 13(3)(c) services are provided to an individual, a person acting on behalf of the recipient (i.e. SC)., which requires physical presence of a person acting on his behalf, with supplier for supply of service
Given the above, the said transaction will have place of supply where the services are actually performed i.e. Bombay
Gujarat will raise an IGST invoice where place of supply will be Maharashtra with billing address of SC
It can not be qualified as export of services since place of supply is in India.
Posted by
SACHIN AGARWAL on
May 23, 2018
Answer ID :
68673
Merely providing consultancy in for from india will not make the POS in india. The moot question here is whether as per contract services are in the nature which necessarily require the physical presence of the recipient or the person acting on his behalf in India ? If answer is yes then POS shall be in India as per Sec. 13(3) of IGST Act. IGST bill has to be raised by the Gujrat RP in favour of SC and it will not amount to export.
However, if answer to the above question is in negative then POS will be out of india and it shall be treated as Export of services as all other conditions of Sec. 2(6) are getting satisfied here.
Posted by
Jatin Harjai on
May 24, 2018