TaxTMI 
TaxTMI 
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?
Export of Service
22 Jan 2020 
4 Replies 
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Export of services as zero-rated supply permits LUT or IGST payment with refund and recovery of input tax credit.
Supply of services from India to a recipient outside India whose place of supply is outside India and paid in convertible foreign exchange is treated as a zero rated supply, exempt from GST but eligible for Input Tax Credit recovery. Exporters can either use a bond/LUT to export without paying IGST and claim refund of unutilized ITC, or pay IGST and seek refund of that tax. Refund claims must be filed within two years from the relevant date for exports, defined by completion of services or receipt of advance when applicable. SEIS benefits may also be available subject to FTP conditions. (AI Summary)
Supply of services from India to a recipient outside India whose place of supply is outside India and paid in convertible foreign exchange is treated as a zero rated supply, exempt from GST but eligible for Input Tax Credit recovery. Exporters can either use a bond/LUT to export without paying IGST and claim refund of unutilized ITC, or pay IGST and seek refund of that tax. Refund claims must be filed within two years from the relevant date for exports, defined by completion of services or receipt of advance when applicable. SEIS benefits may also be available subject to FTP conditions. (AI Summary)