Supply of services or not - as per the agreement, applicant has ...

Agreement Services Not Export: Financial Aid Doesn't Qualify as Export Under GST Clause (iii) Section 2(6) IGST Act 2017.

December 22, 2020

Case Laws     GST     AAR

Supply of services or not - as per the agreement, applicant has consented/agreed to do some acts and as per clause 5 of Schedule II appended to GST Act, 'an agreement to do an act' will be considered as supply of services. Hence in the subject case, we hold that the applicant is rendering supply of services for which it is receiving consideration in the form of “financial assistance”. - The subject transaction does not satisfy the condition mentioned in clauses (iii) of Section 2(6) of the Integrated Goods and Services Tax Act, 2017 (IGST Act) and therefore the said transaction cannot be considered as Export of Services under the GST Laws. - AAR

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