Clarification on export of services under GST

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..... Representations have been received seeking clarification 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 out sources a portion of the servi .....

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..... he exporter of services located in India from the supplier of services located outside India with respect to the out sourced portion of the contract. Thus, the total value of services as agreed to in the contract between the exporter of services located in India and the recipient of services located outside India will be considered as export of services if al .....

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..... reign 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 out sourced 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 : .....

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..... he Explanation 1 in section 8 of the IGST Act) to supply a part of the services (say 40 per cent. of the total contract value). ABC Ltd. India shall be the exporter of services for the entire value if the invoice for the entire amount is raised by ABC Ltd. India. The services provided by XYZ Ltd. Mexico to the US based client shall be import of services by ABC Ltd. India and it would be liable to .....

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..... 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. 2. It is requested that suitable trade notices may be issued to publicize the contents of this circular. 3. Difficulty if any, in the implementat .....

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