GST export of services

[Madhavan iyengar]

Under export of service rules it is mentioned that it wont qualify as export if:

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;”

meaning of above ie if indian company exports to its related unit in foreign country then the unit in foreign country should not be a mere branch it should be a registered entity in the foreign country ie in America the word INC is used in germany Gmbh is used which signifies that they are separate regd entities in foreign countries so that benefit of export is not denied

Experts please clarify on this issue.

AI Summary

GST Export Rules: Services to Related Foreign Entities Must Prove Legal Entity Status for Export Benefits A discussion on the Goods and Services Tax (GST) export of services rules highlights concerns about the qualification of services as exports when provided to related foreign entities. It is noted that for a service to qualify as an export, the foreign recipient must be a registered legal entity, not just a branch of the Indian company. Acronyms like 'INC' or 'GmbH' are insufficient to prove distinct legal status for export benefits. The conversation emphasizes the importance of case law and documentation to establish the legal entity status, as the burden of proof lies with the exporter to claim exemptions.