Export of procurement and IT services

[Shrikanth Parmarthy]

Dear Experts,

Need your advice on the following:

Facts of the case

1. Our company is providing the following services to the group company in Australia based on agreement

a. Procurement support services- such as support in purchase order processing and development and implementation of procurement practices etc. The designated employees of Indian entity for rendering these services are working from home from India where they provide these services to Australian Entity

b. Information Technology (IT) support services where an designated Indian employee available in Indian payroll with laptop will be working from home in India and provides IT support to Australian company.

c. Account receivable service where a designated employee sits at Indian office and provides support accounts receivable support to Australian Entity

The invoice raised to Australian company is on the basis of cost plus markup.

Queries:

1. Can the above services be treated as export of services as they satisfy the following conditions:

a. Supplier is within India

b. Receiver is outside India and

c. Place of supply of service is location of receipient as they are not covered in any specific category in section 13 of IGST act.

AI Summary

Indian IT and Accounting Services to Australia Qualify as Zero-Rated Export Under IGST Act Section 2(6) A legal analysis of export of services under GST reveals that procurement, IT, and accounts receivable services provided by an Indian company to an Australian entity can potentially qualify as export of services. The key considerations include the supplier's location in India, recipient's location outside India, place of supply rules, payment in foreign exchange, and separate legal entity status. Services meet export criteria under Section 2(6) of the IGST Act when specific conditions are satisfied.