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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 ..... ia. Ministry of Finance. Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing vide Circular No. 161/17/2021-GST dated 20th September. 2021 has issued a clarification relating to export of services-condition (v) of section 2(6) of the IGST Act 2017, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of' uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 161/17/2021-GST dated 20th September, 2021 by the Government of India, Min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act"), hereby clarifies the issue in succeeding paragraphs. 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 excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act 2017. "Person" has been defined under sub-section (84) of the section 2 of the CGST Act 2017, as under: (84) "person" includes- (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 auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fice, 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 supply between establishments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 supply between merely establishments of distinct persons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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