Export of Service

[Kaustubh Karandikar]

XYZ(India) has provided remote service to a customer outside India regarding “online service for programming and development”. Is XYZ liable to pay GST on it?

[Ganeshan Kalyani]

Export of Service. No GST.

[KASTURI SETHI]

Sir,

I support the views of Sh.Ganeshan Kalyani Ji. The place of supply of services is outside India under Section 13 (3) (a) of IGST Act, 2017.

Your questions are always thought provoking. Your questions force us to rack the brain. If any person wants to be fool-proof expert he/she must reply to your query. If answer is proved wrong, even then the expert will learn. There is no use to answer simple query. One must have passion and muster courage to reply to your query. I am really thankful to you for posting brain-racking queries. Such queries are always very useful for all, especially, for youngsters like Sh.Ganeshan Kalyani Ji who is doing LL.B and has full career ahead. It is a fact that I also learn from your queries.

[KASTURI SETHI]

Section 13 (12) of IGST Act is also applicable for qualifying as export of service.

AI Summary

Place of supply outside India: exported online programming services treated as export of service and not subject to GST.
Remote online programming and development services provided by an Indian supplier to a recipient located outside India qualify as export of services where the place of supply is determined to be outside India under the IGST place-of-supply provisions; when those conditions are met such cross-border services are not subject to GST.