Applicability of GST

[Kaustubh Karandikar]

(XYZ) is in India providing services to foreign delegates when they visit India. All their arrangement like travelling, stay and meetings schedule are taken care by XYZ. XYZ receives payment in INR from PQR (outside India) for arrangement of these services. Is XYZ liable to pay GST on the amount received from PQR?

AI Summary

GST Applicability on Indian Company Services to Foreign Delegates Debated; Payment in Rupees vs. Foreign Currency Under IGST Act Section 2(6) A discussion on the applicability of GST to services provided by an Indian company, XYZ, to foreign delegates was held. XYZ receives payment in Indian Rupees from PQR, a foreign entity. One expert argued that GST applies as the payment is not in convertible foreign exchange, thus not qualifying as an export of services under Section 2(6) of the IGST Act. Another expert agreed, noting the services occur within India. However, the original poster contended that since the recipient is outside India, it should be treated as an export. After clarifications, it was agreed that if payment is received in foreign currency, it could be considered an export.