Export of services: outsourced foreign-supplied portion treated as export if reverse charge IGST paid and RBI permits retention. When an Indian supplier outsources part of a contract to a foreign supplier, two supplies occur: the Indian supplier's export to the overseas recipient for the full contract value and the import of services by the Indian supplier from the foreign subcontractor. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit. Amounts directly paid by the overseas recipient to the foreign supplier can still count as export realisation for the Indian supplier if reverse charge IGST is paid and RBI permits retention abroad.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Export of services: outsourced foreign-supplied portion treated as export if reverse charge IGST paid and RBI permits retention.
When an Indian supplier outsources part of a contract to a foreign supplier, two supplies occur: the Indian supplier's export to the overseas recipient for the full contract value and the import of services by the Indian supplier from the foreign subcontractor. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit. Amounts directly paid by the overseas recipient to the foreign supplier can still count as export realisation for the Indian supplier if reverse charge IGST is paid and RBI permits retention abroad.
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