Clarification relating to export of services sub-clause (iv) of the Section 2 (6) of the IGST Act 2017

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....as issued the above referred circular. For the uniformity. it has been decided that the said circular issued by the CBIC is being made applicable, mutatis mnutandis, in implementation of the MGST Act, 2017. Copy of the referred CBIC circular is attached herewith. This Trade Circular is clarificatory in nature. Difficulty if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Maharashtra (Rajeev Kumar Mital) Commissioner of State Tax, Maharashtra State, Mumbai   Circular No. 202/14/2023-GST F.No. 20/06/22/2023-GST-CBEC Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy....

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....w for reference: "(6) "export of services" means the supply of any service when, - (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;" 3.2 One of the conditions mentioned in sub-clause (iv) of Section 2(6) of the IGST Act&nbs....

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....account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier. (b) Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country." 3.4 Reference is also invited to Para 2.52 (d) of chapter related to General Provisions Regarding Imports and Exports of the Foreign Trade Policy (FTP) 2023, which has come into force from 01.04.2023, which specifies that: Para 2.52 (d) Invoicing, payment and settlement of exports and imports is also permissible in IN....