Eligibility of input tax credit wherein place of supply is outside India

[saravjit singh]

If any Indian consultancy firm provides technical and advisory services to an Indian company in relation to acquisition of working unit outside India. In that case whether the input tax credit is available to that Indian unit in terms of section 16(1) of CGST as the place of supply is outside India.

AI Summary

Input Tax Credit Available for Technical Services Used in Foreign Business Acquisition Under Section 16(1) of CGST Act The query concerns whether an Indian company can claim Input Tax Credit (ITC) for technical and advisory services provided by an Indian consultancy firm related to acquiring a working unit outside India. Despite the acquisition being outside India, the place of supply would be India as per Section 13(2) of IGST Act since the recipient is located in India. The services do not qualify as export since both supplier and recipient are in India. ITC should be available under Section 16(1) of CGST Act as the services are being used for business purposes, provided proper documentation and GST registration requirements are met. The transaction is considered a domestic supply for GST purposes.