Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query ✕
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with ' ' ?

Delete Issue

Are you sure you want to delete your Issue titled: ' ' ?

Discussion Forum

Back

All Issues

Advanced Search ❮
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
From To
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID: 121126
Like 1 Bookmark

GST ON CONSULTANCY SERVICE TO FOREIGN COMPNAY

Date 17 Sep 2026
Replies 2 Replies
Views 413 Views
Place-of-supply rules determine whether locally performed site-supervision services for overseas clients qualify as exports under GST.
GST registration may be required either on crossing the general turnover threshold or because an inter-State supply can trigger compulsory registration. Export-of-service status depends on the place of supply and the contractual scope of site-supervision responsibilities. Where locally performed supervision services are covered by the relevant place-of-supply rule, the place of supply may be in India; foreign-currency payment by a foreign recipient would not by itself establish export status. The service may then be taxable at the standard GST rate under the applicable intra-State or inter-State tax mechanism. (AI Summary)

Our client an individual was recently took up an assignment (Site supervision of ship building in Indian yards - Goa in India) for a German company. German company is in the process of ship building under "Make In India project" in India. After completion ships shall be taken to their country. Terms of agreement includes monthly professional charges shall be paid in US$ 5,000 per month (deduction of 25 US$) on account of tax (VAT). Travelling and other expenses in relation to movement within Indian yards to be paid separately. Initial contract for 6 ship building (3 years) subject to renewal on satisfactory completion of first term. Agreement has to be renewed once in 11 months. My client has received two months pay in convertible foreign exchange (US$) and credited to his local bank account. German company needs an invoice (need not be Tax Invoice) for the purpose of paying his professional fees. My query for experts are

(a) Should he get registration under GST..?

(b) Is the professional service an "export service" in this case ?

(c) If he has to get registration under GST law, what is the rate of tax..?

[He is giving his service in India for a foreign company and receiving his fees in US$ into his local bank account].

Thank you

2 answers
Sort by
+ Add A New Reply
Hide
Like 0
Replied on Sep 18, 2026
1.

Compulsory registration under GST is required because the client is engaged in making inter-state supplies (export of services technically falling into taxable territory due to place-of-supply rules), overriding the general turnover threshold exemption.

The professional service does not qualify as an "export of service" under Section 2(6) of the IGST Act because the place of supply is determined to be inside India (Goa) under Section 13(3) due to the physical nature of the site supervision services performed locally.

The standard tax rate is 18% (9% CGST and 9% SGST if intra-state within Goa, or 18% IGST), which will apply to the taxable value of the service supplied.

Reply
Hide
Like 0
Replied Yesterday
2.

Since his income also crosses Rs. 20L in the FY, registration under GST is required.

Whether this qualifies as export or will attract GST @ 18% will depend on whehter the service falls under s 13(3) (a) of the IGST Act. This can be analysed based on the contract and the responsibilities, etc.

Reply
Hide
Recent Issues