Export of Service

[Kaustubh Karandikar]

XYZ (France) wants to carry out ‘Clinical Trials’ in India. For carrying out clinical trials, certain statutory permissions are required to be obtained from the Indian Government. XYZ had appointed PQR(India) to give this Regulatory, Administrative and Legal framework support for getting the required permissions from the Indian Government. For this service, PQR(India) will be charging to XYZ(France) in foreign currency. Is PQR liable to pay GST on it?

AI Summary

Debate on GST Applicability for PQR's Regulatory Services to French Company: Export of Service or Not? A discussion forum addressed the applicability of Goods and Services Tax (GST) on services provided by an Indian company, PQR, to a French company, XYZ, for regulatory support in conducting clinical trials in India. The main debate centered on whether this transaction qualifies as an export of service, thus exempting it from GST. Some participants argued that since the service is consumed in India, GST is applicable. Others contended it meets the export criteria, as the service recipient is outside India and payment is in foreign currency, thus exempting it from GST. The forum sought further expert opinions.