GST implications for IT consulting services provided to Indian company for US client

The applicant's IT software-related consulting services provided to an Indian company for a US client were deemed as local services, not exports. The applicant is required to pay GST on these services as they constitute a supply of services under the CGST/TNGST Act. The questions regarding zero-rated supply benefits and eligibility for tax refunds were not addressed by the authority as they were deemed outside the scope of the Advance Ruling Authority under the Act.

---

---

Issues Involved:
1. Whether the services provided by the applicant shall be treated as local services or export of services.
2. Whether the applicant is liable to pay GST on such services provided to the US Client directly.
3. Whether the benefit of zero-rated supply can be availed by him for his services.
4. Whether he is eligible for a refund of taxes already paid in the past if the refund is within the time limit provided under the GST Act.

Issue-wise Detailed Analysis:

1. Whether the services provided by the applicant shall be treated as local services or export of services.
The applicant is engaged in providing IT software-related consulting services in the area of Oracle ERP. The applicant entered into a contract with an Indian GST-registered IT company (Principal) to provide support services to a US-based client. The applicant contended that since the services are rendered directly to the US client, they should be treated as export of services. However, the authority noted that the applicant is not a party to the contract between the Principal and the US client and is paid by the Principal in INR based on the conversion rate. The authority concluded that the services provided by the applicant to the Principal are local services and not export of services. The Principal is the recipient of the services, not the US client.

2. Whether the applicant is liable to pay GST on such services provided to the US Client directly.
The authority determined that the applicant provides services to the Principal, who in turn provides services to the US client. Therefore, the applicant is liable to pay GST on the services provided to the Principal. The services provided by the applicant fall under the category of "supply of services" as per Section 7(1)(a) of the CGST/TNGST Act, and the applicant is required to pay GST at the appropriate rates on these services.

3. Whether the benefit of zero-rated supply can be availed by him for his services.
The authority did not address this issue, stating that it is not within the ambit of the Advance Ruling Authority as per Section 97(2) of the CGST/TNGST Act.

4. Whether he is eligible for a refund of taxes already paid in the past if the refund is within the time limit provided under the GST Act.
Similar to the third issue, the authority did not provide a ruling on the eligibility for a refund of taxes already paid, as it is not covered under Section 97(2) of the CGST/TNGST Act.

Ruling:
1. The services provided by the applicant to the Principal are considered a supply of services under the CGST/TNGST Act, and the applicant is liable to pay relevant tax on such supply.
2. The other questions raised by the applicant were not answered as they do not fall within the scope of the Advance Ruling Authority as per Section 97(2) of the Act.

---