software services

[Madhavan iyengar]

X is a software company based in india and has exported services in fy 13-14/14-15/15-16 to its related party which is a separate incorporated company in europe and also claimed refund of input services under rule 5A as it satisfies all conditions

issue: Due to some international tax judgements in European union there is a upward revision in the pricing of all the earlier contracts and the foreign company has paid the additional amount in fy 17-18 after making calculations based on the judgements and this is a significant amount.

this additional amount which is received in march 18 in relation to earlier year contracts can it be held as export of services under gst and accordingly can refund of itc be claimed.

AI Summary

Software Firm's Additional Payment in 2017-18 Qualifies for GST Input Tax Credit Refund Under Rule 5A for Past Exports. A software company in India exported services to a related European company during fiscal years 2013-2016 and claimed a refund of input services under Rule 5A. Due to international tax judgments in the EU, there was an upward revision of contract prices, and the European company paid the additional amount in fiscal year 2017-18. The company inquired whether this additional amount qualifies as export of services under GST, allowing for an input tax credit refund. Respondents confirmed that the additional amount is linked to past exports and should not affect the refund claim, despite no services being performed in the current year.