Clarification on export of services under GST.

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..... sstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P Dated Shimla-9 the 13th March, 2019. Madam/Sir, Subject: Clarification on export of services under GST regarding It has been observed that taxpayers have doubts on certain issues relating to export of services under the GST laws. Therefore, 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 sa .....

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..... . Furthermore, the said supplier of services located in India would be eligible for taking input tax credit of the integrated tax so paid. 3. Thus, even if the full consideration for the services as per the contract value is not received in convertible foreign exchange in India due to the fact that the recipient of services located outside India has directly paid to the supplier of services located outside India (for the outsourced part of the services), that portion of the consideration shall also be treated as receipt of consideration for export of services in terms of section 2(6)(iv) of the IGST Act, provided the: (i) integrated tax has been paid by the supplier located in India for import of services on that por .....

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..... al contract value shall be taken as consideration for the export of services by ABC Ltd. India provided integrated tax on import of services has been paid on the part of the services provided by XYZ Ltd. Mexico directly to the US based client and RBI (by general instruction or by specific approval) has allowed that a part of the consideration for such exports can be retained outside India. In other words, in such cases, the export benefit will be available for the total realization of convertible foreign exchange by ABC Ltd. India and XYZ Ltd. Mexico. Yours faithfully, Rajeev Sharma (IAS) Commissioner of State Taxes and Excise, Himachal Pradesh Endst. No. 12-25/2018-19-EXN- .....

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