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Export of Service, Goods and Services Tax - GST

Issue Id: - 115181
Dated: 12-7-2019
By:- Kaustubh Karandikar
Export of Service

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XYZ (France) wants to carry out ‘Clinical Trials’ in India. For carrying out clinical trials, certain statutory permissions are required to be obtained from the Indian Government. XYZ had appointed PQR(India) to give this Regulatory, Administrative and Legal framework support for getting the required permissions from the Indian Government. For this service, PQR(India) will be charging to XYZ(France) in foreign currency. Is PQR liable to pay GST on it?

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Posts / Replies

Showing Replies 1 to 9 of 9 Records

1 Dated: 12-7-2019
By:- Ganeshan Kalyani

GST is payable by PQR.


2 Dated: 13-7-2019
By:- KASTURI SETHI

I support the views of Sh.Ganeshan Kalyani Ji. Case law is as under:-

2019 (7) TMI.43-AAR Maharashtra in the case of Applicant Bilcare Ltd.


3 Dated: 13-7-2019
By:- KASTURI SETHI

Sir,

This decision is also worth reading.

2019 (20) G.S.T.L. 124 (A.A.R. - GST) : AAR Maharashtra,IN RE : BEHR-HELLA THERMOCONTROL INDIA PVT. LTD. = 2018 (11) TMI 887 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA


4 Dated: 13-7-2019
By:- Kaustubh Karandikar

The transaction is satisfying all the conditions as per the definition of ‘Export of Services’ i.e.

1) The Supplier of service viz. PQR is located in India.

2) The recipient of service viz. XYZ is located outside India.

3) Since the transaction is falling under Section 13(2) of IGST Act, 2017, and the recipient of service viz. XYZ being outside India, the place of supply of service will be outside India.

4) payment for such service has been received by the supplier of service i.e. PQR in convertible foreign exchange.

5) XYZ and PQR are not branch and HO of same taxable person.

Therefore, to conclude, this being an export of service, PQR is not required to pay GST on it.

Shri Kasturi Ji and Ganeshan Ji, your views please on the above.


5 Dated: 13-7-2019
By:- KASTURI SETHI

Dear Sir,

I wish other experts in the forum should opine to further clarify.


6 Dated: 13-7-2019
By:- Rajagopalan Ranganathan

Sir,

Provision of Service of getting Regulatory, Administrative and Legal framework support for getting the required permissions from the Indian Government is provided by PQR within India (Txable territory) PQR has to pay gst on the service provided by them. Moreover the clinial trials are to be carried out in India. Therefore on both counts PQR is liable to pay gst.


7 Dated: 14-7-2019
By:- DR.MARIAPPAN GOVINDARAJAN

The service will not amount to export of service and liable to GST.


8 Dated: 17-7-2019
By:- Madhavan iyengar

Since GST being a destination based tax in this case where the services are getting consumed the services are consumed in india by the Recipient ie foreign party and not abroad hence going by this principle also gst will become applicable

experts please give your views on this line of thinking as this view is also important in many cases of export of services which have also been deliberated earlier in this forum and should be taken up with the judicial authority as this is one of the fundamentals of gst can one argue on these principles in other cases


9 Dated: 23-7-2019
By:- KASTURI SETHI

Dear Sh.Madhavan Iyengar Ji,

Are you not satisfied with the decisions of AAR cited above ? Have you gone case laws thoroughly ?


1

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