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

Export of service: Director's consultancy to company qualifies as zero rated supply where supplier and recipient are distinct.
A consultancy supply by a director to the overseas company where he serves, effected under a consultancy agreement and not employment, can qualify as export of service and be zero rated because the supplier and recipient are regarded as distinct persons; this position is supported by relevant case law and administrative circular guidance, subject to fulfilment of the other statutory export conditions and documentation requirements.