Place of supply, Goods and Services Tax - GST

[Archna Gupta]

Dear Sir,

Please reply to below mentioned query:

One of our clients handles cargo and tourist chartered flights of our foreign clients coming from outside India and landing in India (anywhere in India) and specifically provides the following services:

•Flight Supervision and Airline Representation

• Ground Operation Supervision

• Ground Handling Arrangements.

• Air Traffic Rights Over-flight / Landing Clearances

• Obtaining Slots (Arrival/Departure)

• In-flight catering arrangements

• Hotel Accommodation and tourism arrangements

• Assistance in Immigration and Customs Clearances.

• Meet and Greet Assistance for Commercial Passengers.

• Aircraft Security Services.

The company gets payment in convertible foreign exchange. All conditions regarding export are satisfied except the doubt where is the place of supply of services ( in India or outside India)

Please reply with quoting the relevant section and rule.

Best Regards

Archna Gupta

9810583037

Posts / Replies

[ANITA BHADRA]

Dear Madam

Your client is providing intermediary services -Section 2(13) of the IGST Act, 2017, “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, . For e.g.: Travel Agent.

Sec 10 of IGST Act - Place of Supply of services where the location of the Supplier of service or the location of recipient of service is outside India - Place of Supply will be the location where services are actually performed

Since place of supply is in India - services provided by your client can not be considered as export.

Regards

[PAWAN KUMAR]

As per my view, since the services being provided by your client as intermediary services as per section 2(13) of IGST Act. Section 8(b) provided that in case of intermediary services, the place of supply will be the location of supplier of service, hence place of supply will be India. The transaction will not qualify as export.

As per the definition under section 2(6) of IGST Act, 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;

In this clause (iii) is for place of supply, which is India, therefore not qualify as export of services.

Thanks.

[ALWAN RAMAN]

please see 2017 (12) TMI 451 N.R.Management Consultants (India) (P) Ltd., v. CST