Export of Service under GST (Conditions)

[Sahil Shah]

Hello Experts,

If a person residing in India charges Consultancy Fees (in USD) from a company in USA, in which he is a director, is it considered to be export of service? There is no employment agreement with such company but there is a consultancy agreement.

I want to know this, so as to decide whether to take benefit of zero rated supply.

Definition u/s 2(6) of IGST act has 5 condition for export of service, one of the 5 conditions is -
'the supplier and recipient of service should not be merely establishments of a distinct person'

Kindly reply considering this condition as other 4 conditions given u/s 2(6) are satisfied by me.
Thank you!

AI Summary

Consultancy Fees in USD by Indian Director to U.S. Firm Confirmed as Zero-Rated Supply Under GST A forum participant inquired about whether consultancy fees charged in USD by an Indian resident from a U.S. company, where he is a director, qualifies as an export of service under GST, aiming to benefit from zero-rated supply. The query focused on the condition that the supplier and recipient should not be merely establishments of a distinct person. Respondents confirmed it as a zero-rated supply and referenced case laws and a GST circular for further clarification. Participants appreciated the shared insights and legal references provided by others in the discussion.