GST on engineering services

[Kaustubh Karandikar]

XYZ(India) providing engineering service (Design, drawing etc) to PQR, Germany (Parent company). Services are provided online from India. Invoice would be raised by XYZ on hourly basis and rate. Is XYZ liable to pay GST on the amount received from PQR?

[DR.MARIAPPAN GOVINDARAJAN]

Please ascertain the service provided by you fulfills the conditions in section 2(16) of IGST Act. If it so it will amount to export of service which will be exempt from GST or it will attract GST. It is my view.

AI Summary

Export of services: determine statutory IGST conditions to assess whether services are exempt from GST. Supply of engineering services provided online from India to a foreign parent may constitute export of services if it satisfies the statutory IGST conditions. If those conditions are met the transaction may be treated as exempt from GST; if not, the supply will attract GST. The factual elements to verify include recipient location, payment direction, place of supply, and the invoicing arrangement.