Export of services under GST: outsourced foreign portion treated as export if reverse charge tax paid and RBI permits retention. Where an Indian supplier outsources part of services to a foreign supplier for a recipient outside India, two supplies arise: the Indian supplier's supply to the recipient for the full contract value and the import of services by the Indian supplier from the foreign supplier for the outsourced portion. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit; the full contract value may nonetheless be treated as export if reverse charge tax is paid and RBI permits retention of part of the consideration outside India.
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 portion treated as export if reverse charge tax paid and RBI permits retention.
Where an Indian supplier outsources part of services to a foreign supplier for a recipient outside India, two supplies arise: the Indian supplier's supply to the recipient for the full contract value and the import of services by the Indian supplier from the foreign supplier for the outsourced portion. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit; the full contract value may nonetheless be treated as export if reverse charge tax is paid and RBI permits retention of part of the consideration outside India.
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