TaxTMI 
TaxTMI 
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?
Export of Service
12 Jul 2019 
9 Replies 
2339 Views Asked by
Export of services: regulatory facilitation for foreign clinical trials may be GST-exempt, but place-of-supply and consumption tests are disputed.
Whether regulatory, administrative and legal facilitation services provided in India to a foreign sponsor for clinical trials qualify as export of services depends on statutory export conditions (supplier location, recipient outside India, place of supply outside India, payment in convertible foreign exchange, and no branch/head-office relationship). One line of opinion treats the services as exported and GST-exempt; contrary views treat the services as supplied and consumed in India and therefore taxable, with reliance on place-of-supply and consumption principles and advance-ruling precedents. (AI Summary)
Whether regulatory, administrative and legal facilitation services provided in India to a foreign sponsor for clinical trials qualify as export of services depends on statutory export conditions (supplier location, recipient outside India, place of supply outside India, payment in convertible foreign exchange, and no branch/head-office relationship). One line of opinion treats the services as exported and GST-exempt; contrary views treat the services as supplied and consumed in India and therefore taxable, with reliance on place-of-supply and consumption principles and advance-ruling precedents. (AI Summary)