GST Export of Services 26 export of services

  • Slides: 22
Download presentation
GST & Export of Services

GST & Export of Services

 2(6). “export of services” means the supply of any service when, –– (i)

2(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; 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;

Explanation 1 to Section 8 –– For the purposes of this Act, where a

Explanation 1 to Section 8 –– For the purposes of this Act, where a person has, – (i) an establishment in India and any other establishment outside India; (ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or (iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons

1) Export of Services (Basic Example) : Mr. S – India • • Supplier

1) Export of Services (Basic Example) : Mr. S – India • • Supplier Performed an Event in UK Recipient Mr. S, supplier, is located in India Mr. R, recipient, is located in UK Mr. S performed an Event in UK for Mr. R Mr. S receives his dues in Foreign Exchange Mr. R – UK

2) Export of Services where the supplier of service is not located in India

2) Export of Services where the supplier of service is not located in India but uses Infrastructure located in India : Mr. S – USA Supplier Technical Consultancy Recipient Mr. R – UK • Mr. S, supplier, is not located in India. He is from USA. • Mr. R, recipient, is located in UK • Mr. S gives a Technical Consultancy to Mr. R from a Computer of his friend which is located in India. • NO SUPPLY IN INDIA

3) Vice Versa, i. e. Export of Services where the supplier of service is

3) Vice Versa, i. e. Export of Services where the supplier of service is located in India but uses Infrastructure located outside India : Mr. S – India Supplier Technical Consultancy Recipient Mr. R – UK • Mr. S, supplier, is located in India. • Mr. R, recipient, is located in UK • Mr. S gives a Technical Consultancy to Mr. R from a Computer of his friend which is located in USA. • EXPORT OF SERVICES

2(15). “location of the supplier of services” means, –– a. where a supply is

2(15). “location of the supplier of services” means, –– a. where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; b. where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; c. where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and d. in absence of such places, the location of the usual place of residence of the supplier;

4) Export of Services where address of recipient is unknown: Mr. S – India

4) Export of Services where address of recipient is unknown: Mr. S – India Supplier Technical Consultancy via Email Recipient Mr. R – Unknown • Mr. S, supplier, is located in India. • Mr. R, recipient, is located outside India but his address is unknown. • Mr. S gives a technical consultancy via email to Mr. R. • Mr. R pays full advance in foreign exchange. • PLACE OF SUPPLY shall be location of supplier AND hence it is NOT export of services AND Mr. S should charge GST accordingly. [Section 13(2)]

2(14). “location of the recipient of services” means, – a. where a supply is

2(14). “location of the recipient of services” means, – a. where a supply is received at a place of business for which the registration has been obtained, the location of such place of business; b. where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; c. where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and d. in absence of such places, the location of the usual place of residence of the recipient;

5) Export of Services where goods are required to be made physically available by

5) Export of Services where goods are required to be made physically available by recipient to supplier : Mr. S – India • • Supplier Parts of Computer to be Assembled Recipient Mr. R – UK Mr. S, supplier, is located in India. Mr. R, recipient, is located in UK Mr. R sends various parts of computer to be assembled to Mr. S PLACE OF SUPPLY shall be location of ACTUAL PERFORMANCE AND hence it is NOT export of services AND Mr. S should charge GST accordingly. [Section 13(3)(a)]

6) Export of Services where goods are required to be made physically available by

6) Export of Services where goods are required to be made physically available by recipient to supplier and services on such goods are provided from remote location by electronic means : Mr. S – India Supplier Monitor load of transactions on the servers Recipient Mr. R – UK • Mr. S, supplier, is located in India. • Mr. R, recipient, is located in UK • Mr. S gets an order from Mr. R to monitor load of transactions on the servers located in UK using Internet facilities • PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Proviso to Section 13(3)(a)]

7) Export of Services where goods have come to India for repairing and re-export

7) Export of Services where goods have come to India for repairing and re-export after repairing : Mr. S – India • • • Supplier Repairs the Computers in India Recipient Mr. R – UK Mr. S, supplier, is located in India. Mr. R, recipient, is located in UK. Mr. R sends computers for repairing to Mr. S repairs the computers and sends them back to Mr. R. PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Proviso to Section 13(3)(a)]

8) Export of Services to individual requiring recipient’s physical presence : Mr. S –

8) Export of Services to individual requiring recipient’s physical presence : Mr. S – India Supplier Hair Stylist Recipient Mr. R – UK Mr. S, supplier, a hair stylist, is located in India. Mr. R, recipient, an individual, is located in UK. Mr. S goes to Mr. R in UK for hair styling services. PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Section 13(3)(b)] • BUT if Mr. R comes to Mr. S in India for hair styling services. • PLACE OF SUPPLY shall be India AND hence it is NOT EXPORT of services. [Section 13(3)(b)] • •

9) Export of Services related to immoveable property : Mr. S – India Supplier

9) Export of Services related to immoveable property : Mr. S – India Supplier Architectural services for a house to be constructed Recipient Mr. R – UK • Mr. S, supplier, is located in India. • Mr. R, recipient, is located in UK. • Mr. R appoints Mr. S for architectural services for a house to be constructed in UK • PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Section 13(4)] • But if Mr. R appoints Mr. S for architectural services for a house to be constructed in India • PLACE OF SUPPLY shall be India AND hence it is NOT EXPORT of services. [Section 13(4)]

10) Export of Services related to admission to / organisation of event : Mr.

10) Export of Services related to admission to / organisation of event : Mr. S – India • • Supplier Conference (Event) Recipient Mr. R – UK Mr. S, supplier, is located in India. Mr. R, recipient, is located in UK Mr. R pays to Mr. S for conference to be attended in India PLACE OF SUPPLY shall be India AND hence it is NOT EXPORT of services. [Section 13(5)] • But if, Mr. R pays to Mr. S for conference to be attended in UK • PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Section 13(5)]

11) Export of Services w. r. t. intermediary services : Mr. S – India

11) Export of Services w. r. t. intermediary services : Mr. S – India Supplier Remunerated in the form of Commission. Recipient Mr. R – UK • Mr. S, supplier, a commission agent, is located in India. • Mr. R, recipient, is located in UK • Mr. S sources sales for Mr. R and gets remunerated in the form of commission. • PLACE OF SUPPLY shall be India AND hence it is NOT EXPORT of services. [Section 13(8)(b)]

2(13). “intermediary” means a broker, an agent or any other person, by whatever name

2(13). “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account;

12) Export of Services w. r. t. transportation services : Mr. S – India

12) Export of Services w. r. t. transportation services : Mr. S – India Supplier Work of Transportation of Goods Recipient Mr. R – UK Mr. S, supplier, is located in India. Mr. R, recipient, is located in UK Mr. R provides work of transportation of goods from Mumbai to USA PLACE OF SUPPLY shall be USA AND hence it is EXPORT of services. [Section 13(9)] • But if, Mr. R provides work of transportation of goods from Mumbai to Bangalore • PLACE OF SUPPLY shall be Bangalore AND hence it is NOT EXPORT of services. [Section 13(9)] • •

13) Export of Services w. r. t. passenger transportation services : Air India Supplier

13) Export of Services w. r. t. passenger transportation services : Air India Supplier Providing Food Services Recipient Mr. R – UK • Air India, supplier, is located in India. • Mr. R, recipient, a passenger, is located in UK. • Mr. R departs from Mumbai to UK. Air India departs from Mumbai to UK providing food to Mr. R. • PLACE OF SUPPLY shall be Mumbai AND hence it is NOT EXPORT of services. [Section 13(10)] • But if, Mr. R departs from UK to Mumbai. Air India departs from UK to Mumbai providing food to Mr. R. • PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Section 13(10)]

14) Export of Services w. r. t. Online Information and Database Access or Retrieval

14) Export of Services w. r. t. Online Information and Database Access or Retrieval Services : Mr. S India § § Supplier Digital Data Storage Services Recipient Mr. R – UK Mr. S, supplier, is located in India. Mr. R, recipient, is located in UK Mr. R hires digital data storage services from Mr. S. PLACE OF SUPPLY shall be UK AND hence it is EXPORT of services. [Section 13(12)] § If 2 of the following are in taxable territory then it will be NOT treated as Export of Services : • Recipient’s Location • Payment Card Issuing Company • Billing Address • Internet Protocol • Payment Bank • Country Code • Fixed Land Line

2(17). “online information and database access or retrieval services” means services whose delivery is

2(17). “online information and database access or retrieval services” means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as, – (i) advertising on the internet; (ii) providing cloud services; (iii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet; (iv) providing data or information, retrievable or otherwise, to any person in electronic form through a computer network; (v) online supplies of digital content (movies, television shows, music and the like); (vi) digital data storage; and (vii) online gaming;

Thank You !

Thank You !