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TMI BlogClarification on export of services under GST.X X X X Extracts X X X X X X X X Extracts X X X X ..... on certain issues relating to export of services under the GST laws. The same have been examined and the clarifications on the same are as below: Sl.No. Issue Clarification 1. In case an exporter of services outsources a portion of the services contract to another person located outside India, what would be the tax treatment of the said portion of the contract at the hands of the exporter? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s located in India and the recipient of services located outside India will be considered as export of services if all the conditions laid down in section 2(6) of the Integrated Goods and Services Tax Act, 2017 (IGST Act for short) read with section 13(2) of the IGST Act are satisfied. 2. It is clarified that the supplier of services located in India would be liable to pay integrated tax on rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the: (i) integrated tax has been paid by the supplier located in India for import of services on that portion of the services which has been directly provided by the supplier located outside India to the recipient of services located outside India; and (ii) RBI by general instruction or by specific approval has allowed that a part of the consideration for such exports can be retained outsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax credit of the integrated tax so paid. Further, if the provisions contained in section 2(6) of the IGST Act are not fulfilled with respect to the realization of convertible foreign exchange, say only 60% of the consideration is received in India and the remaining amount is directly paid by the US based client to XYZ Ltd. Mexico, even in such a scenario, 100% of the total contract value shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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