TMI BlogClarification relating to export of services-condition (v) of section 2(6) of the IGST Act 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... (CBIC) has issued the above referred circular. For the uniformity, it has been decided that the said circular issued by the CBIC is being made applicable in implementation of the IGST Act. 2017. Copy of the referred CBIC circular is attached herewith. This Trade Circular is clarificatory in nature. Difficulty if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Maharashtra Yours faithfully, (RAJEEV KUMAR MITAL) Commissioner of State Tax, Maharashtra State, Mumbai. Circular No. 161/17/2021-GST F. No. CBIC-20001/8/2021 GST Government of India Ministry of Finance Department of Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Relevant legal provisions: 3.1 The export of services has been defined in sub-section (6) of the section 2 of the IGST Act 2017 as under: (6) export of services means the supply of any service when, (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8; 3.2 Explanation 1 of the Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) an individual; (b) a Hindu Undivided Family; (c) a company; (d) a firm; (e) a Limited Liability Partnership; (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (g) any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013; (h) any body corporate incorporated by or under the laws of a country outside India; (i) a co-operative society registered under any law relating to co-operative societies; (j) a local authority; (k) Central Government or a State Government; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentational office, then the said branch or agency or representational office of the foreign company, located in India, shall be treated as establishment of the said foreign company in India. Similarly, if any company incorporated in India, is operating through a branch or an agency or a representational office in any country outside India, then that branch or agency or representational office shall be treated as the establishment of the said company in the said country. 4.3. In view of the above, it can be stated that supply of services made by a branch or an agency or representational office of a foreign company, not incorporated in India, to any establishment of the said foreign company outside India, shall be treated as suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate persons under CGST Act, and thus are separate legal entities. Accordingly, these two separate persons would not be considered as merely establishments of a distinct person in accordance with Explanation 1 in section 8 . 5.2 Therefore, supply of services by a subsidiary/ sister concern/ group concern, etc. of a foreign company, which is incorporated in India under the Companies Act, 2013 (and thus qualifies as a company in India as per Companies Act), to the establishments of the said foreign company located outside India (incorporated outside India), would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for being considered as export of services, as it would not be treated as s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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