Export of Services

[Sanjeev Sharma]

As per Section 2(6) of IGST Act, “Export of services” means the supply of any service when,–– (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

In view of above if services provided to overseas branch would not be eligible as export of services due to specific exclusion for such transactions in the definition of “export of service”.

Will this sale to Overseas branch be liable for GST Payment or be treated as non-taxable supply and why.

AI Summary

Services to Overseas Branches Not 'Export of Services' Under IGST: Subject to IGST as Inter-State Supplies. A discussion forum addressed whether services provided to an overseas branch qualify as 'export of services' under the GST framework. According to the IGST Act, services qualify as exports if certain conditions are met, including that the supplier and recipient are not merely distinct establishments of the same entity. Replies indicated that services to an overseas branch do not qualify as exports and are subject to IGST. One participant noted that such transactions are inter-state supplies, hence liable for IGST, while another emphasized that these do not meet the export criteria and are therefore taxable.