Clarification on Section 2(6) IGST Act: Indian and Foreign Companies as Separate Entities Qualify for Service Exports.

The circular addresses the ambiguity in interpreting condition (v) of section 2(6) of the IGST Act 2017 regarding the export of services. It clarifies that a company incorporated in India and a foreign company are separate legal entities under the WBGST Act. Therefore, services provided by an Indian subsidiary or related entity to its foreign counterpart are not considered as transactions between establishments of a single entity. Such transactions qualify as exports of services, provided other conditions are met. This clarification aims to ensure consistent application of the law across different jurisdictions.

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