Ship Repair in India

[illayyear yanapu]

Sir,

Assessee was engaged in repairing of Ships, Wherein assessee is in India and Place of supply is also India and Ship belong to Foreign company. Assessee has to bill to foreign company in dollars. How GST would attract for this transaction. In my view it is not a export of service due to place of supply is in India. Guide us...

Thanks

illayyear

[RAMESH PRAJAPATI]

This is export of service. Ships are imported temporarily for repairs and as per section 13 (2) , (3) of the IGST Act, place of supply will be location of the service recipient in such cases.

AI Summary

Export of service: repairs to temporarily imported ships treated as export since place of supply is recipient's location.
Repair services performed in India on a foreign-owned ship temporarily imported for repair qualify as an export of service because, under the IGST place-of-supply rules for services related to temporarily imported goods, the place of supply is the location of the service recipient, thereby allowing onshore repairs billed to an overseas recipient to be treated as exported services.