Question ID : 44428

GST on online tuition provided outside India

I would like to get an expert advice from you regarding my doubt about GST computation of a firm providing online tuition services to students, mostly NRI students residing abroad. As parents of these students are working abroad, they transfer tuition fees in Indian Rupees from their NRE A/c. Since the payments are received in Indian Rupees, this cannot be considered as export of services. So I assume that this falls under taxable services liable for GST. My query is whether IGST is applicable and if IGST is applicable how to disclose place of supply in B2C of GSTR1.

In the Instant case, the location of the supplier is in India and the Place of supply shall be determined as per Sec 13(2) of the IGST Act 2017, in the absence of specific provision for online training, which is the location of the recipient of service (i.e., outside India). Thereby, as the location of the supplier in India and the place of supply is outside India, it would amount to Inter-state supply as per Section 7(5)(a) of the IGST Act 2017 and IGST shall be paid. Further, it do not qualify to be export of services as the consideration is not received in CFE. The place of supply would be State code 96- Foreign Country. A cue can be taken from Circular 184 for the purposes of State code.