Category: GST

1. You are an intermediary and the place of supply of the service provided by you to the principal is in India irrespective of the mode of payment.
2. Hence, GST is payable on the services provided by you as an intermediary to the principal.

( FAQ 13: IT/ITES)

In terms of section 2 (15) of the IGST Act, 2017, the location of a service provider is to be determined by applying the following steps sequentially:
(1) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(2) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(3) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
(4) in absence of such places, the location of the usual place of residence of the supplier.
The location of ‘C’ is to be determined by applying the criterion from
(2), or (3), or as the case may be, (4).

(FAQ 12: IT/ITES)

1. No. In this case, ‘C’ is covered by the definition of ‘intermediary’ [section 2(13) of the IGST Act, 2017].
2. The place of supply of such intermediary service is location of the supplier in terms of section 13(8) of the IGST Act, 2017.
3. As ‘C’ is located outside India, GST is not payable in this case.

(FAQ 11: IT/ITES)

1.  Yes, you would be liable to pay GST.
2. A supply is treated as an import of service if the following conditions are satisfied:
   (1) the supplier of service is located outside India;
   (2) the recipient of service is located in India; and
   (3) the place of supply of service is in India.
3. The place of such supply would be taken to be the location where the firm is registered (in GST) and the supplies would attract integrated tax (IGST).
4. The factum of which currency was used to pay the consideration is immaterial.

( FAQ 10: IT/ITES)

1. Location of the recipient of service is defined in section 2(14) of the IGST Act.
2. A recipient of services is treated as located outside India if his place of business where he receives services is outside India or, if he does not have a place of business, his usual place of residence is outside India .

( FAQ 9: IT/ ITES)

1. Place of supply of IT/ITES services is the location of the recipient in terms of section 12 and 13 of the IGST Act, 2017.
2. However, if the recipient is not registered and his address is not available on the records of the supplier, the place of supply would be the location of the supplier.

( FAQ 8: IT/ITES)

The supply of any service is considered an export of service, where the following conditions are met:
(1) the supplier of service is located in India;
(2) the recipient of service is located outside India;
(3) the place of supply of service is outside India;
(4) the payment for such service has been received by the supplier of
service in convertible foreign exchange; and
(5) the supplier of service and the recipient of service are not
merely establishments of a distinct person in accordance with
explanation 1 of section 8 of the IGST Act, 2017.

(FAQ 7: IT/ITES)

1. Exports and supplies to SEZ units and SEZ developers are zero-rated in GST.
2. Zero-rating effectively means that no tax is payable on exports but the exporter/supplier is entitled to the input tax credit on inputs/input services used in relation to exports.
3. The exporters have two options for zero rating, which are as follows:
   (A) To pay integrated tax on supplies meant to be exported and get
   refund of tax so paid after the supply is exported.
   (B) To make export supplies under a bond or letter of undertaking
   and claim refund of taxes suffered on inputs and input services in
   relation to such exports.

( FAQ 6: IT/ITES)