Question ID : 44581

Taxability of gst on export of service transaction

Good morning sir I am CA Arpit amin doing practice at vadodara I required your valuable guidance on the following issue : Trail of Transaction Service Provider:- Mechlein Engineers (GST Registered at Ankleshwer) Service Order Received From :- Aashi KASEI (Japan Based Company) Nature of Service :- Providing Supply of welders for Electrode renovation job on site basis located in India and outside india. Location of Site :- Birlagam, Nagada, Ujjain , M. P (Grasim Industries Nagda Plant) Payment Received :- Aashi KASEI form Japan in USD. Issue :- Wether the transaction between Mechlein Engineers and Aashi KASEI for providing service on the obove mention site can be treted as export of service or not?

If its merely a manpower supply services, then the place of supply would be determined as per Section 13(2) of the IGST Act 2017, thereby, the Place of supply would be the location of the recipient of service, which is located outside India (Japan) and subject to satisfaction of other conditions provided under Section 2(6) of the IGST Act 2017, the underlying transaction amount to export of service. Recipient of service: The person who is liable to pay the consideration is treated as the recipient of service as per Section 2(93) of the CGST Act 2017. In the instant case, it should be the entity located in Japan. Disclaimer: The work order and the Agreement between the parties shall be looked into to conclude whether the service is of manpower supply or not.