gst for services -reg

[Ramakrishnan Seshadri]

Dear Sir,

We have done a service for repair work in India relating to a Foreign Customer . He will be paying the amount in Indian rupees and he wants to issue invoice in his name and foreign address. Now our question is whether gst is applicable for service made or what is the procedure to be followed. can be treated as export of service and invoice can be raised against lut or how to proceed.

Experts please guide

Thanks & REgards,

S.Ramakrishnan

[KASTURI SETHI]

In my view it is not export of service.

[Rajagopalan Ranganathan]

Sir,

According to Section 2 (6) of IGST Act, 2017, “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 or in Indian rupees wherever permitted by the Reserve Bank of India; 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 the above definition you are not satisfying the clauses (ii) and (iii), that is the place of provision is in taxable territory (India) though the customer is not residing in India. Therefore supply of service by you will not qualify as export of service.

[Yash Jain]

Dear Sir,

In GST Place of Service Provisions, if the Supply for the Service is rendered in India, then irrespective of the Location of the Recipient, it will be always be a “Service Rendered in India” – Reason & Logic – GST Being a destination & Consumption based Tax.

For Taxes : Yes GST Will be charged.

For Invoices : Yes you can raise the Invoice in Name of the Foreign Customer (Amendment has been made on 29.08.2018) were in bill to and Ship to Provision is being made applicable to Invoice also.

Regards,

[Yash Jain]

Dear Sir,

The Bill to and Ship to is made applicable to service also. Inadvertently I had mentioned the Word "Invoice" instead of Service.

Regards

[DR.MARIAPPAN GOVINDARAJAN]

GST is applicable since this would not amount to export of service.

[PAWAN KUMAR]

GST invoice to be issued.

AI Summary

Export of services: where place of supply is India, supply is not export and GST applies; invoice shows foreign recipient.
Supply of repair services performed in India does not qualify as export of services because the place of supply is India; therefore the supply is taxable and GST must be charged. An invoice may be issued in the foreign recipient's name and address and the bill-to/ship-to concept applies to services, but that invoicing does not alter the place of supply or export character.