Chhattisgarh Clarifies GST on Export Services: Outsourcing Abroad Counts if IGST Act Conditions Met, Reverse Charge Applies.
The circular issued by the Commissioner of State Tax in Chhattisgarh provides clarifications on the export of services under GST, particularly when a portion of the service contract is outsourced to a foreign entity. It states that the total contract value will be considered as an export of services if conditions under the IGST Act are met. The Indian service provider must pay integrated tax on the imported services under the reverse charge mechanism and can claim input tax credit. Even if full payment is not received in India, the export benefit applies if the RBI allows part of the payment to remain outside India.
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