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

Export of services exclusion for overseas branches makes such transactions inter-state supplies and liable to IGST.
Services to an overseas branch do not qualify as export of services because the definition requires the supplier and recipient not be merely establishments of a distinct person; such supplies are therefore treated as inter state supply when the supplier is in India and the place of supply is outside India, making IGST payable.