Export of services under GST: outsourced foreign supplier portion treated as export; Indian supplier liable for IGST on reverse charge. An Indian supplier outsourcing part of an export contract to a non resident creates two supplies: an export by the Indian supplier for the full contract value and an import of services for the outsourced portion. The Indian supplier must pay integrated tax under reverse charge on the imported portion and may claim input tax credit. Even if part consideration is paid abroad directly to the non resident supplier, the full contract value can be treated as export provided reverse charge tax is paid and foreign retention of consideration is permitted by the RBI.
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 under GST: outsourced foreign supplier portion treated as export; Indian supplier liable for IGST on reverse charge.
An Indian supplier outsourcing part of an export contract to a non resident creates two supplies: an export by the Indian supplier for the full contract value and an import of services for the outsourced portion. The Indian supplier must pay integrated tax under reverse charge on the imported portion and may claim input tax credit. Even if part consideration is paid abroad directly to the non resident supplier, the full contract value can be treated as export provided reverse charge tax is paid and foreign retention of consideration is permitted by the RBI.
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