EXPORT OF SERVICE, Goods and Services Tax - GST

[SAFETAB LIFESCIENCE]

Dear Friends/Experts,

We a Chennai based Pharma company have done consultancy to foreign company.

Now, we have to raise Invoice. The receiver has no GST registration in India/Tamilnadu.

Payment will be received by USD only. Hope this is GST exempted Supply (i.e) Export

of Service/Supply.

Shall we raise Invoice without charging GST ? Or shall we have to raise Invoice with GST and collect GST from party and pay to Government and to get refund from Government ???

Experts please guide us immediately please. It is urgent at our end.

Posts / Replies

[Harshal Fifadra]

Yes, it is an export of service as the place of supply is outside India as per Section 13(2) of IGST Act, 2017 and all the conditions of export are getting satisfied as per Section 2(5) of IGST Act, 2017.

[Ganeshan Kalyani]

Sec 16 of IGST Act, states that a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:––

(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or

(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of experts.

[YAGAY and SUN]

In our view the place of provisions of services is outside of India and hence, would be treated as export of services, therefore, accumulated ITC would be paid back in case as refund and this refund would be calculated as per the prescribed formula.