Export of Service

[Kaustubh Karandikar]

XYZ (India) providing consulting, support and software development services to PQR parent company (Denmark). This work will be paid as a fixed fee subject to a certain number of man-hours per month being provided. All these are performed in India and provided to PQR in Denmark. The server is located in Denmark. Is XYZ required to pay GST on it?

AI Summary

XYZ's Services to Parent Company in Denmark Qualify as Zero-Rated Exports Under IGST Act, No GST Required XYZ, an Indian company, provides consulting, support, and software development services to its parent company, PQR, in Denmark. The services are performed in India, and the server is located in Denmark. The query is whether XYZ needs to pay GST on these services. Responses indicate that XYZ's services qualify as exports under the IGST Act, making them zero-rated supplies. Thus, XYZ is not required to pay GST but can claim a refund of Input Tax Credit (ITC) and potentially benefit from the Service Exports from India Scheme (SEIS) under the Foreign Trade Policy (FTP).