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Receipt for services rendered for Export

205 us billion doar and we are contributing around 3.5 to the world Services of exports but in this we have to understand the glines of GST under export of the services so we have today we have a sham Kaza s from Ahmedabad to give a insightful knowledge on export of Services Under GST I would like to request my fellow uh Committee Member Ashwin bahala to uh introduce our today's speaker thank you Rahul uh let me give a brief introduction of our today's speaker Mr sham Kaza is basically mcom with LLB he's having 30 years hands of experience in all the fields of indirect TX and its Allied subjects such as Central excise service tax Customs foreign trade policy GST eou sez FMA State prohibition excise narcotics Etc he has authored various articles on indirect accession which are published in renowned Publications and has also provided more than 100 seminars on indirect Tech subjects across the India he was Regional advisory he was Regional advisory committee member for Central excise and customs and service tax Baroda for quite some time throughout his career he has worked as a head in indirect indirect tax in reputed corporates such as lnt God harer group General Motors India almic pharmaceuticals limited and is currently working as a vice president of indirect taxation at inas pharmaceutical limited Amad now not making not taking much time uh I would like to welcome our today's speaker sham sir to start session sir please sir over to you thank you very much first of all thanks to Surat branch and their members for inviting me and giving this opportunity to me and the I think the voice and the screen is is visible to all of you yes sir the voice is also Audible and the screen is visible sir perfect perfect so okay thank you so today our topic is can can you this other photos which are visible can I can I close this uh these other photos how to close this actually you have to do from your side only sir and okay okay okay participants will have option to go for the presentation only at time okay okay okay okay okay so today our topic is export of Services Under GST in fact this is our fourth Topic in our Surat Branch out of export and import Bunch all already we have covered import of goods import of services export of goods today our topic is export of services I have tried to prepare UST 2 index because the slides runs around 120 slides so I have tried my level best to give you the detailed index for the today's seminar our today's discussion is only restricted to export of services not related to import of services domestic Services exempt services and also we are not covering any refunds export of goods import of goods the export of services is very conceptual highly conceptual matter it needs actually one full day seminar but after this covid I have started giving two hours and two and half hours seminars so this is not possible really speaking to cover entire export of service Topic in two hours so what I did I have tried to give you around 25 examples also I have tried to give 60 Concepts by way of comments I have not directly told these are the concepts but I have given in way of com in way of comments because the export of services in fact actually it's highly conceptual subject this Concepts we can understand more on implementation and practical applicable of the law into transaction I have though I have prepared 120 slides I will touch those very important and conceptual issues and wherever it is not much required I will try to skip those slides and though our topic is expert of services today sometimes I have traveled beyond the export of services sometimes I speak export of goods import of goods import of services also because to give you overall understanding see first thing we need to see in case of export of services the first thing is article Constitution what it says in simple manner we need to understand article says 286 of the Constitution of India it says export of services and import of services these both are to be dealt by the part Parliament that means the application of this article any export of services or anything related to exports Imports is dealt by the Parliament that means basically export of services are by way of igst law not cgst law because you are aware cgst law sgst law igst law there are three laws in the bunch of GST of course Union territory law but export and imports are dealt by way of igst law by the central government that is the meaning of this article further article 269 a says government Parliament should formulate the principles that means state governments are not having any power to formulate the principles central government Parliament is having power to formulate the igst law these are the two articles related to export of services the important question comes how exports are treated under GST we need to understand export of services are dealt as zero rated zero rated means entire chain of the transaction complete is zero rated that means no cost of inputs no cost of finished goods similarly no cost of input Services no cost of finished services that is zero rated so export of services are zero rated the fundamental concept we need to understand today very important concept normally most of the people are missing this important concept that is to qualify the zero rated Supply first it should qualify as Supply Supply means in general sales transfer Etc consideration for business purpose this is the meaning of the supply so to qualify as a zero rated the transaction should be fall under category of Supply if it is not supply then you cannot apply the transaction for eligibility at zero rated it's a very conceptual fundamental one has to remember this issue having seen this our entire today discussion lies between this one single slide of course this out of this single slide we will discuss around 60 slides but entire almost 2 hours discussion in and around it will be roaming only and only this definition that is export of services what is the meaning under the law very important this says SE 26 of the igst act as I told you it is always falling under igst law exports Imports already I told you as per Constitution as well as IGA this export of services is having five ingredients I that means five LS to qualify export of services there are five ingredients what are those five ingredients supplier of service should be located in India recipient of service located outside India place of supply of service is outside India convertible foreign exchange realization and those transactions should not nearly establishments so the important factor these five ingredients says location of supplier should be in India and location of outside outside India place of supply is outside India that means two ingredients should be outside India so most of the discussion today based on this entire definition because once you thoroughly understood this definition we can say export of services whenever any problem comes we can easily tackle those issues we will see analyze each and every Point each and every V of this session two SE of the igst meaning of exper of services P even single element if it is failure please remember exper of service that means all five ingredients should be cumulatively achieved then only the transaction fall under export of services while dealing this please note what is the meaning of the composite Supply and what is the meaning of the mided supply why it is required Whenever there is a supply if it is a composite Supply then the rate principal Supply attracts for the purpose of of the transaction of course export of services are zero rated but sometimes what happens you may you may be having Access Credit ITC input tax credit so you may incline to pay the igst and then take the refunds so whenever you are giving any kind of services two or more taxable supplies to are more taxable supplies one is taxable other is free Supply then it is not a taxable Supply two should be taxable supplies then principal supply of that particular rate of the principal Supply will attract the transaction similarly in case of midet Supply two or more individual supplies then single price whenever you are giving any invoices for exports then in that case highest rate of the tax is required to be leved if the export of services if you wish to opt the igst payment route otherwise zero rated otherwise zero rated so Supply is having two kind of composite Supply mixed Supply so any transaction you need to supply is making then you need to understand whether it is a supply of miid Supply or supply of composite supply of Supply normal Supply without any mid Supply any without any composite Supply now already we have seen the I am going back to give you you to show you the two seats here if you see the supplier of the service is located in India and outside India so first we need to understand what is India that is very important we are discussing session two seats we are analyzing session two seats two seats is IG at 2017 it defined export of services so we are seeing what is the meaning of India in simple terms igst at says cgst at says 256 why cgst act the reason is for around 20 Provisions igst law says the provisions mentioned appeared in the cgst law equally applicable for the purpose of GST even in case of igst law so therefore sometimes though Parliament is having powers to levy on exports Imports for many of the sessions we refer cgst law because that enabling provision has been made in the igst law therefore India definition we are looking cgst act session 256 say territory of India means India means territorial Waters seabed subsoil underlying such Waters continental shelf exclusive economic zone exclusive economic zone means not special economic zone that is a separate subject exclusive economic zone means from seabed that means Sand Bay of the Sand Bay of the sea to up to 200 kilom nautical miles it is exclusive economic zone any other Maritime Zone air space above territory and territorial Waters this is India that's all that means up to 12 nautical males of torial Waters torial water definition is given under Maritime Zones Act up to 12 nautical miles it is treated teritorial water up to 200 nautical males it is given continental shelf up to 200 na me it is it is said exclusive economic zone up to bilateral agreement between the two countries is equidistant like Sri Lanka and India 200 nautical males means it is not possible because Sri Lanka distance it is very nearer distance so in that case bilateral agreement will be there 50% of The Distance by the Sri Lanka 50% by India that is called equidistant there will be bilateral agreements so so what is the meaning of this slide I want to what I want to explain you if you supply anything up to 200 nautical miles for exclusive economic zone suppose some gas is formed in the vertion up to 200 nautical miles you are providing certain services to exclusive economic zone please remember it is not export of services why that two SE says to qualify the export of services Supply service should be given outside India when you are giving any gas extraction project of the exclusive economic zone of Arabian Sea it is treated the transaction in India not outside India now have having seen this we need to understand what is the Customs Waters Customs Waters means up to the limit of exclusive economic zone extending up to the limit of the exclusive economic zone that means up to 200 nautical males is customs Waters that means our Fisheries our marine rights we are having based on teritorial Waters Customs Waters and St exclusive economic zone that is a different subject Maritime Zone already we have discussed this issue at length in case of our import of goods but here the purpose is to tell you what is India and how it is interpreted in the law now having seen this you can understand what is the jurisdiction of taxable dator taxable datory means very simple extend whole of India plus including territorial Waters including exclusive economic zone because that is also part of India so we have seen what is the India definition after seeing this it is equally important what is outside India because the word is appearing in six of the export of services definition so it is important to understand what is outside India very simple outside India means non- taxable territory means territory which is outside the taxable territory that's all that means you whenever you are giving any Services outside the taxable territory of India it is treated as expert of service subject to other five conditions now we have seen section 26 only we are discussing we have seen location of the supplier of service location of the recipient of service place of supply three important words we have seen please note to determine the nature of Supply whether it is int domestic or domestic or exports or are Imports the location of the supplier location of the recipient place of Supply without these three there cannot be any consideration treatment whether it is exports Imports domestic or interestate that means always always you need to verify three things where is the location of the supplier where is the location of the recipient what is place of Supply if you do not know these three things you cannot determine any service whether it is a domestic service whether it is export service whether it is a import of service whether it is a inter so having seen this having seen this having seen this we need to understand what is the location of the supplier of service I am giving you one concept location of the supplier of service is imported from the service tax law so if you dealt that service tax La related to location of the supplier of service definition same definition more or less same definition without any much difference it is taken for GST law why this location of the supplier of services come into service tax La I give you one minute background basically this is to understand where the supplier of service is the location because whether it is a domestic law whether it is export of service we have already seen session two seats it says location of the supplier of service location of the supplier of the service India location of the recipient of service outside India place of Supply outside India this we have seen so it is important to understand what is the location of the supplier of service location of the supplier of service simply says if the fellow suppose SRI Ram Kaja is registered in Gujarat the location of Sri Kaja is Ahmedabad Gujarat suppose SRI Kaja is not registered under GST law then what is the location business establishment of the SRI Ram Kaja supp s Kaja business establishment is in Surat then Surat Gujarat is the location of the business establishment suppose s Kaja is not rendering any business establishment his services but he having some fit establishment then they will find out what is the fit establishment of Sri Ram Kaja suppose that fit establishment is also not there then they will travel de usual place of residence because that is the location of the supplier so registration n to up to that they will travel usual place of residence if you have taken registration they will travel up to the place of registration so these Concepts you need to keep in mind as I told you this exports subject services import of services subject today our subject is export of services highly conceptual so with examples and Concepts only we can understand otherwise this Concepts without application on day-to-day life it is very difficult to understand further importance of the location of Serv location of the services what is that what is that conceptually location of the recipient of service is the place for determining the place of Supply you agree with this because conceptually conceptually location of the supplier location of the supplier is always recipient of service this law is internationally across the world this is the law location of the recipient of service by default is the place of Supply location of the recipient wherever it is not possible then under GST law location of supplier is also attracted so we are discussing from this slide when the location of the services supplier of service is important under GST law that we are discussing we are discussing when the location of the recipient of service is not identifiable then location of the supplier of service will come into picture where the recipient location is not available and three exceptional situations location of supplier is very important but remember in case of import of services location of the supplier of service shall be outside India whereas export of service the location of supplier of service shall be in India that means location of supplier having seen this now we need to understand what is the location of the recipient of service because session two seats already we have discussed India already we have discussed outside India already we have discussed who is the location of the supplier of service now the fourth Point element leg of the definition 26 that is location of the recipient of the service location of the recipient of the service is discussed section 270 of the cgst act it says normally conceptually location of the recipient of service by default is always place of Supply there are certain exceptions that we will discuss here also same meaning this is also imported from the earlier S2 service tax law this is also similar to export of supplier location of supplier of service service this is similar to location of recipent of service is also similar to location of supplier of Service registration if you have taken that registration place if not fix establishment if not most directly connected if not residence usual place of residence what is the place of business business in nutal place of business means where you have taken registration or where boots are maintaining or engaged with business this is not much important but in GST law it discuss to obtain the registration job work provisions and keeping the books of accounts and inspection of Records purpose this is very important otherwise place of business is not much relevant for this purpose having seen this what is the fixed establishment fited establishment means temporary presence of stuff is also fited establishment if you recruit some office staff that is also fit establishment if you engage any Arrangements related to service that is fit establishment already we have discussed fit EST M trigger when there is no registration only that already you have seen so we are discussing when the fit establishment will trigger it will trigger when you have not taken any registration but you are supplying any Services then they will come to know from where this establishment the services are given fit rest lishment may be headquarters Branch or any subsidary in the name of establishment so as I told you fit establishment more or less will trigger only in case where you are not obtained any registration similarly usual place of residence means where generally you are residing in case of individuals in case of other than individuals where it is incorporated or legally constituted that is the place of residence but as I told you these all Concepts will trigger only when you are not registered and you are rendering Services let me tell you conceptually these are not much relevant when you are registered nobody would like to see from where what is your establishment what is your fital establishment was you what is your usual place of residence what is your place of Supply it is not seen unless you are not registering but you are giving Supply Services then only these all Concepts will come in other way these all are more on missionary provisions missinary Provisions having seen this the already we have discussed export of services definition two seats location of the supplier recipient of the supplier re recipient of the services India outside India this we have discussed now the third ingredient of the session two seats definition is it says place of Supply should be outside India to qualify as a expert of service I have tried to give around 25 examples for place of Supply because place of Supply very important please listen carefully each and every transaction needs to be validated and technically clinically required to be examined we should not use our experience Common Sense intelligence knowledge to decide place of Supply why it is so because place of Supply is dictated I use the word dictated by the law you should not use your common sense US service of service no it may be export of service may not be that we will see because losses the place of Supply what is the place of Supply whether it is America whether it is India or outside India that they will say for each and every kind of services they say that suppose 120 services are there around 13 Services they say this is the place of Supply in rest of the places place of Supply as a conceptual consumption is the place of Supply consumption is the place of Supply in general but there are exceptions therefore I told you clinically you need to examine each and every transaction place of Supply if you understand well let me tell you 70% of the export of services you understood well you can tackle at any point of time no you need not take anybody's advice if you understand place of Supply 70% of the export import bunch of transactions you can you can say you are highly knowledgeable let us discuss place of Supply I have given seven conceptual slides then further example each and everything place of Supply why place of supply has come let me tell you one example manner you can quickly understand this suppose a person located in Mumbai may buy a ticket on internet from a service provider loc located outside India for for a journey from dly to London in services this kind of transactions are happening regularly so it is very difficult to understand what is the place of Supply so thereby government by way of law they told by this is the place of Supply in case of exports what is the place of Supply they have told similarly import of services also same concept appliable more or less already import of services we dealt two months back in our institution so you can ask why from where it is origin by way of law how it is traveled why I should see place of Supply you can raise the question why you are required to see place of Supply because in interested Supply it said export of service is a interested Supply then export of service it said already we have seen place of supply and place of Supply in igst law falling under Section 13 so we are discussing discussing today most of the provisions related to place of Supply session 13 so overview if you see the 13 is the place of Supply provision under GST law to qualify place of Supply 13 please remember there are two Provisions to add to sessions under one igst at 12 and 13 in case of 12 place of Supply both recipient and supplier should be in India whereas in case of 13 one person should be outside India one person should be in India then only 13 will trigger so import export transactions always session 13 will trigger in generally this session 13 is having 133 to 13312 with a specific situations 10 situations two provis one subsession and 133b 13 Provisions are there these 13 Provisions government says what is the place of Supply that means government say Mr I will dictate you what is the place of Supply don't use your common sense other than this there is one common default provision session 32 will come into play for services not covered under those specific that mean conceptual remember that means in case export of services if the place of supply of service does not fall under the one specified under Section 133 to 1313 of the igst ACT then place of Supply shall be location of the recipient of service as for session 132 and therefore consider as expert of service as long as location of the recipient is outside India hope you understood this concept very important I read once again in case of export of service if the place of supply of service does not fall under the one specified under Section 13 32313 of igst act then the place of Supply shall be location of the recipient of service by location of the recipient conceptually it is a conceptual provision yes per section 132 and therefore considered as export of service as long as location of recipient is outside now if you see the 13 the conceptual default residual provision says location of the recipients but government says phally available loation I will decide place of Supply actually performed in case of any Services received or provided through electronic means means then place of Supply will be goods are situated not location of the supplier not location of the recipient in case in case any immovable property situation property is located is the place of Supply in case of immob property there are some exceptions that we will deal generally property is located is the place of Supply any event held losses actually held is the place of Supply you know why we are discussing place of supply place of supply place of Supply because SE two SE says the definition of export of services place of Supply should be outside India to qualify export of service that you are aware therefore it is inevitable today out of compulsion we are looking Boss AB place of Supply my service similarly in case of banking financial institution non-banking financial company location of the supplier is the place of Supply similarly in case of hiring means transport also location of the supplier in case of Transportation of goods destination of such a Goods see how the lawmaker has made the law if you see it is very interesting if you see really very interesting suppose any Services related to transportation of goods you are providing suppose then the place of Supply is based done distination of such Goods very interesting similarly any service you are providing to passenger Transportation then embark on the conven is the place of Supply similarly if you provide any providing services on board of a convenance there first schedule point is the place of Supply any V or Services location of the recipient if you see entire slides I have put different colors yellow pink blue don't think this is just I have put colors based on what whatever color is seems to be very good those colors are put it is not so each color is having their own importance suppose if I put yellow that means though the discussion is related to export of services this slide discussion is export of services but the the slide contents are equally applicable to import of services also so whenever I'm giving any color each color there is a meaning but intentionally I'm not telling you now because if I tell unnecessarily you may lose your focus similarly wherever I have bold wherever I have put underline for each meaning each full stop comma semicolon there is a meaning when you read thoroughly on your own then you will understand what is this why I put So Many Colors because each color is having its own importance suppose if this if the provisor though it is discussion expert of services if I have given yellow color that means wherever I have given yellow color on the top of the slide that means same provision equally applicable to input of service also so without any support you can yourself you can understand by a provision yellow color ra that means it is appliable to both green color means the opportunity come so I'm I don't want to much focus on this but to give you green color means only export of service only it is applicable though our topic is export of service this particular principles are not applicable to import of services that is the message therefore in the heading I have given green color okay after seeing this what is the overall concept if you see 13 place of Supply is outside India based on place of Supply criteria considered as export of service invoice can be raised with payment of tax and then ask for refund under rule 89 or without payment of tax under and the then refunds refunds under 89 for ITC refunds or without any refunds mode but under Lut Bond no cost if suppose that place of Supply is not falling if place of Supply is not falling outside India then place of supplies in India if you decide based on the discussion then this is always interestate domestic Supply due to section 75c residual I if not covered under Section s seven and8 then it will fall under subsession and GST payable by fcm supplier of services in general it is a cost because your foreign customer is not registered in India Therefore your foreign customer is not entitled to take the credit so entire discussion summary if you see whatever we are discussing 25 examples if export of services no issue if export of services is not happening because of place of Supply because of place of Supply that means whenever we are discussing these entire 24 25 examples which we will be discussing now there we kept one assumption location of the supplier is in India recipient of service is outside India place of Supply what is the place of Supply with that assumption we are discussing and we are assuming foreign and services are not given to establishments with that exemption we are discussing place of Supply transactions today so the exemption I have given emphasis we analyze various scor scenarios assuming that the below given four conditions of two seats of the igst 2017 are constantly achieved so that we can understand how the place of Supply is relevant and important place of supply for your easy beneficial purpose I have done one scientific manner exercise I have done let me tell you again I have done one scientific manner analysis what I did I have taken at igst session 13 entire session 13 I have taken I have divided A B C D I have divided place of Supply is always outside India that means whenever you are providing these three services it is always place of Supply outside India always outside India no need to see no need to discuss on this but as a th rule I want to give you some thumb rule understanding for your quick memory purpose and easy purpose second in B very important pay attention place of Supply always India India cost fcm fcm means forward charge mechanism RCM means reverse charge mechanism service intermediary Bank outside India Banking and hiring of means taxi remember cost always always that means this is always cost however I I go to D first these two are not relevant for the purpose of export of services because I told you session 13 has been made by the lawmaker keeping in mind both for export transaction and import transactions of services so lawmaker has made 13 ingly therefore these two are not much relevant for the purpose of export of services so that intentional I have written and strike down many places I have written and strike down that means it is not much relevant or it is not applicable however however this c c for Calicut that see these Services a Services place of Supply maybe India maybe outside India that we will deal what are those eight Services performance serviceses Electronic Services if you are giving any servic through electronic mode any service physical presence any Services you have given on immovable property any service you have provided on event Based Services any Services being a transporter you have provided on Goods any Services you are aircraft passenger aircraft service provider you have given to passengers any Services you have provided on board of conveyance place of Supply maybe India or maybe outside India if you understand this slide it is very easy to understand entire export of services now we are dealing examples first residual provision services are being provided losses what I have done in these examples I have given provision first in italiat by I have mention Italian so that you can quickly Focus this is something related to reproduction of the law that is General as a legal student you know whenever there is itates that is that is a reproduction of the law so intentionally wherever the law is there I have provided in italiat in entire slides and now with that I have given one example services are being being provided by the consultant located in India suppose cons services to your client located outside India USA in relation to legal matters then what is the provision whether service you are in I request you please mute some person is not muted his uh video please request you so already we have discussed export of services two seats definition supplier of service should be located in India you are residing in India Surat you have given consultancy Services recipient of service located outside India USA place of Supply outside India this is as per two seats I have not done anything in every example of these 25 examples I have reproduced supplier of service service located in India I have just reproduced re of service located outs India I just reproduced ofly outside accept Services specified S 3 to 13 OB just consultancy those services are not falling under Section 3 to3 therefore the place of Supply is the location of the supplier location of the supplier is in Surat so don't worry your services are met the condition at sport of services no tax no igst payment no forward charge mechanism no cost because we are discussed residual provision for this residual provision in generally very triggers in general I have given 10 examples these 10 examples are not only limited this are given because for your quick understanding purpose in general pure consultancy Services scientific Technical consultancy Services sales promotion Services you are providing from Surat product registration services you are providing from Surat sitting in Surat you are arranging IPR Services you are providing from Surat Market authorization you are providing from Surat market research payent registration employe expenses reimbursement product development expenses contract research fees given to faculty debit node issued for late delivery of the finished goods foreign to the foreign vendor penalty Bank processing charges related to ECB loan these all are the services these are not exhaustive I have just given you as a example 10 Services these services are always export of service it is treated because the services are not falling under those specified Services sub Section 3 to 13 like immobile property event performance so in that situation location of the supplier is the place of Supply location of the supplier you are in Surat so you you have met the condition of export of services now 1333a we are seeing A2 this says what we are discussing A2 this A2 how it is flown I am going back to tell you just to read the this a this a 1 2 3 where I told you I have made scientific understanding for you is location of the place of Supply is the location of recipient location of recipient is always USA that with understanding we discussing so place of Supply location recient so that we are discussing A2 second provision this says nothing contained in this session shall apply temporarily imported into India for repairs for any other treatment process exported after such that means notification 134 94 153 94 1 15 8 95 32 97 these all notifications we have discussed if you remember in case of import of goods wherein we had a detailed discussion on this if you remember so if you import any Goods under these Customs notifications after repair if you sent back that means export to the foreign country then place of Supply will be foreign country so I have given you example the supplier of the service located in India yes import bort recipent located outside India yes USA this is our example example two third place of Supply SE 13 to says recipent of the location section 13 to says this is provision of s 132 reent of the location reent of location USA no issue export of service place of Supply says export of service don't worry because location of the recipient is America and that is the place of Supply third VR Services any person giving V Services supplier suppose Indian based company renders on information and database access retrieval services void a services for market research to USA based company supplier service located in India yes vo services in India recipient of service located outside India as per session two seats of export service definition yes USA place of Supply outside India USA why why place of Supply because the law says location of the recipient in case of World Service is the place of Supply location of the recipient USA so no issue export of service I have given one table format V service it's just for your academic purpose I skipping that now banking this is we are discussing b b for Bombay I we have segregated if you remember I told you five minutes back a b c d b I told you it is always outside India you are giving services but unfortunately place of Supply says place of Supply is the place where the location of the supplier that mean Surat you are sitting in Surat you have provided the services con Services say for example USA individual is maintaining interest bearing account FD or SB with Indian Bank India and Indian Bank India is charging Bank charges for providing the banking service to USA individual this exception is not applicable to ECB loan remember therefore I have given you in bracket second commission agent intermediary intermediary very important is in India Sur and charging Commission on the foreign customer USA customer hid stats in India for 30 days within 30 days then the lastes supplier of service in India Surat yes recipient of service outside India yes place of Supply If You observe closely I have written with red ink and strike down that means condition place [Music] ofation Sur is the place of location of the supplier not location of the supplier is the location of the place of Supply that means Sur is the place of Supply that means export na domes now we are situation I have given you one intermediary Services I thought it is very important to give you Consolidated position of entire intermediary in the GST law I quickly read please pay attention if intermediate is in India and supplying services to the foreign customer not considered as of service fcm cost second if intermediate is outside India and supplying the service to the Indian customer not consider as import of service no RCM no impact that is a good thing third if you intermediate is in India and facilitating the supply of goods between two persons located outside India and intermediary maintain specific records exemption as for 12a there is a specific exemption that we will discuss as per notification n 2017 ITC to be reversed please note call to the tent fourth both intermediate and foreign customer are located outs India Exempted as per General exemption 9 o 2017 10 C no impact actually if you pay attention you will laugh it on seeing this you may ask me question by intermedi or fore [Music] can you tell me what is the reason for this the reason behind this is why they have told [Music] if you read the notification 201 10 C entry if you see then you will understand what I [Music] telling but artificially this is artificial entry is there in LA but it is artificial entry if you closely observe issue therefore they have made this fourth one fifth both intermediary suppli and recipient are in India domestic service so this summary I give you quickly if you understand this intermediary two lines you will understand entire intermediary in case of intermediary there will never be Import and Export of service I repeat in case of intermediary there will never be import or export of service in case of intermediary there will be either fcm domestic or fcm cost or exemption that's all if you remember this one slide you will understand entire intermediary of entire GST law this I have given the same concept intermediary with the application of law I have given intentionally you can go through whenever you get time similarly 12aa I have told you there is a exemption sit intermedi May facil Supply Goods or service and status of exemption 12a available for facilitation of goods when supplier and disp both located outside India and intermediary located in India that is exemption given 12aa this says that Supply intermediary should be related to Goods plus supplier of intermediate should be in India service recipient principle should be outside India third party principle to customer or supplier outside India and place of Supply is in India then the exemption is available subject to maintaining the documents there is a specific exemption provided serial number 12aa specific entry just to give you the intermediary exceptional entry therefore I thought it is also important to include in the summary popularly that means intermediary intermedi outside India and principal in India not treated as import of service no RCM intermediate in India and principal outside India not treated as export of service fcm cost after seeing this we are seeing c c for Calicut fifth one C5 example here I have reproduced in case session 133a the place of supply of the following service shall be the location where the services are actually performed Services actually performed Let Us with example to understand in better manner Indian company deputes a technician to German company for its missionary repair in Germany supplier located in India yes Sur India H always this supplier of located of supp supplier and recipient of service Services we have constantly maintained but place of Caron to understand place of Supply so first and second is always common recipient of service located outside India yes German mission is situated in Germany place of Supply Mission physically made available at Germany and pro says I'm going back to previous slide physically available phally Avail export of service no issue no for no cost no forward charge mechanism payment no IG payment now now I told you one example is this and the Contra example we are seeing in Five series that the same performance German company sends its samples to Indian laboratory for testing and Analysis purpose supplier of service located India yes Surat so recipent of service located outside India yes Germany place of Supply outside India samples physically made made available at Surat India so I have written place of Supply with red ink and strike down because samples are place of Supply in this case is Surat India outside India because provis says where it is physically available that is the place that is a Sur so that means IG payment forward charge mechanism like domestic service cost because the other person is not cannot be take any ITC next other provision Services by electronic means Lawes if you provide any service from Surat when such services are provided from a remote location by way of electronic means the place of Supply shall be the location where the goods are situated example Indian based IT company renders services to the France based company from its office in India to start a machine equipped with digital software such machine is situated in the office of the France supplier of service located in India yes service of supplier through electronic means reent of service located outside India these two are constant these two are flown from I told you SE two six export of service meaning yes France third place of Supply outside India Mach at France happily this is export of service no no discussion no cost no fcm payment no igst payment second example of the same Bunch Indian based IT company renders services to the France based company from office in India to start to start a machine equipped with digital software such machine is situated in the office of the Chennai supplier of service located India yes reent of service Lo India yes France place of Supply machine at Chennai law is where the place of performance where the goods are equip Place ofly Serv cost payment forward charge mechanism cost no ITC because foreign supplier cannot take ITC next if you are giving any services to individuals actually performed losses whenever you are providing from Surat to any individuals any Services physical presence of the recipient is the place of Supply physical presence of the recipient individual is the place of Supply let us see with the example l based company has appointed Indian based laboratory to test their medical Fitness of London based employees physical pres supper of service located India yes laboratory situated in India recipient of service located outside India yes company situated London place of Supply testing performed on London Bas employees at London happily it is export of service no issue you are ised the law because it says where individually performed performed at outside London export of service place of Supply is export of service Contra example same situation UK modeling agency appointed India based beautification for beautification of their models in India actually performed that is the our principle law supplier of service India yes recipient of service India outside India UK yes place of Supply in this example India because physical presence are of models are in India models are in India therefore in case of individuals they came all the way from London to India and they got that services from India therefore place of supply for meeting the export of services outside therefore I have written with red ink and strike down that means cost next immovable property immovable property loss is where immovable property situated let us see with the example for our better understanding US based company has appointed arch of India to design their building at Chicago suppose you are in Surat you are a good Arch you are at Surat building at Chicago and US based company has hired you to get that services from you supplier of service located in India yes Surat you are a good architect at Surat India recipent of service outside India yes you have given services to us place of Supply immovable property location yes that building is Chicago you have achieved export of services don't worry you are registered as architect and your services are considered as expert of services no cost no fcm no igst payment Contra example US based company has appointed arch of Mumbai to design their building in India supplier service located India yet Surat artech recipent of service located outside India yes USA place of Supply location of the immobile property in India because location of the immobile proper I told you in the beginning of the place of Supply each and every transaction we need to clinically examine why I said so there are some exceptions are also there in place of Supply immobile property one exception is created that is created in session 12 not in 13 but we need to see as a overall 12 and 13 to understand though it is export of service though we need to see 13 but that exception is to be required to be seen why that required to be seen why we are required to be seen that the losses this law particular immovable property losses where location of the supplier of location reent is outside India where location of the supplier or location of the recipient is outside India now the third exception because of that reason what happened this exception India based company has appointed architect of Mumbai to design their building at Chicago that means recipient and supplier both are in India building it at Chicago because of the 1213 supplier of service located in India Artic is in India recipient of service is located outside India no is in India place of Supply service located India no location of the service recipient Mumbai that means when supplier and recipient both are in India though immovable property situate outside India because of this provision export of service that is the exception there are certain exceptions in supply of services so we need to see overall 12 and 13 because of the compulsions now next one the event based law the law says event Based Services actually event held is the place of Supply let us see what is that suppose for example Finance based France Bas Pharma company has participated in Pharma conference at France organized by a society in India what is the example our example says supplier of service located India yes India reent of service located outside India yes FR place of Supply service outside India yes Pharma conference is held at France export of service no issue Contra example France based Pharma company has participated in Pharma conference at India organized by Society in India supplier of service located India yes recipent of service located outside IND yes Friends Place of Supply Pharma Conference held at India so place of Supply fa situation event actually held is the place of Supply fa again next transportation of goods transport ofs of such Goods is the place of Supply Destin of such Goods is place of supply so you need to see what is the destination of such Goods destination of such Goods transportation of goods example Singapore based company has appointed Shipping Lines based at in India for transportation of goods to USA export of goods by India under CAF contract under CAF contract supplier of service service located in India yes recipient of service located outside India yes place of Supply service is outside India yes destination of goods is USA export of service no issue happily we can conclude this matter transaction Contra example same transportation of goods discussion only Singapore based company has appointed shiting lines based in India for import of goods in India under fob contract from Dubai supplier of service located in India yes recipent of located out India yes Singapore place of Supply destination of such Goods India of goods India cost IG payment no credit to the recipient because Foreigner is not having any registration India to CL the credit cost I have given you entire GST law and transportation of goods and its implications if you understand this slide you will understand entire transportation services and its impact under GST law a c Road fob contract Indian flight forwarder is a service provider service recipient is foreign Goods importer place of Supply outside India nature of service export of services notification number available simultaneously available 20a up to 39 2021 please note every year they are extending GST payment no service recipent Indian Goods exporter same yeah Indian fight forwarder two Indian Goods exporter outside India yes domestic service still Yes 20a valid up to 3921 one no GST payable a fob foreign fight forwarder foreign going Goods importer P place of Supply not applicable nature of service no impact already we have discussed export of service s 10 C no GST payable a CF CF contract fright forwarder outside service provider Indian Goods exporter place of Supply outside India nature of service no import of service not applicable exemption is not required not applicable no being import of service no GST pable similarly a c and road I have given here a whatever I said is applicable to C also in case of Road there is a exception where Indian GTA provides to Indian GTA place of Supply outside India but still treated domestic service therefore payment will come fcm or RCM why I said fcm or RC c m because if the person is taking transport is taking credit then he is required to pay CM if the transport is not taking then recipient is required to pay under RCM whenever you get time you go through this slide this will give you entire picture of Transportation of goods by Arc Road and question of export of services by the service provider and taxability in nutshell one only single line by road to Road there is a tax in rest of the places whether it is a air whether it is a sea whether it is a road as long as the transporter is providing services and destination is outside India Goods no tax only one situation that I have made with reding specifically here I have made with red in yes fcm with this transportation is over now passenger Transport Service other provision this ISS Embark of the conven is the place of Supply see interesting how they lawmaker is rating I tell you these all are more or less service stats EST service stats Provisions only almost place of Supply Provisions almost they have imported so if you are conversent if you are handled service tax law you can easily understand this Provisions not with much difficulty passenger Transport Service embark on the conve place of Supply separate tickets place of supply for separate tickets issued by India based Airlines to foreign customer for Journey from London to DHI supplier service located in India yes recipient of service located out outs India UK yes place of Supply outside India because Embark the conve at London UK no issue Contra example of supply for separate tickets issued by Indian Bas line to foreign customer for Journey from DHI to London DHI to London supplier of service located in India yes recipient of is located outside India yes UK by this time you are conversent with our understanding this one and two always we are keeping constant these two are constant fits only one thing is variable that is place of Supply because our we want to understand place of Supply therefore it is inevitable to us to keep other conditions constant and one is variable otherwise we cannot understand place of supply so here place of Supply d d Journey from DHI to London what losses embark on convents so cost service provided conv suppose any internet service you are traveling to London some internet services are provided dur during the board some food is given that service is given then what is the law says first schedule Point of Departure is place of Supply first schedule point is the place of Supply service provided by a India based company to foreign customer on board a conven during the flight USA Dubai India supplier of service located in India yes recipent of service is located in USA yes place of Supply outside India USA why board a conven during the flight USA because first Embark is first schedule Point departure that is USA Contra service provided Indian A supplier to USA passenger recipient on board a flight having route India USA supplier India yes recipient service located outside India yes place of Supply India why being first schedule Point departure depart because you are traveling India to USA you are traving India to USA tax this is not much relevant just I have given you I am skipping having seen this now what we have seen I tell you export of services two seats definition there it said location of the supplier that we have discussed we have seen recipient of supplier re of the service recipient that we have seen recipient of the services that we have seen India also we have seen what is India we have also seen what is outside India we have seen supplier location we have also seen what is the place of Supply what is the place of Supply if you remember the definition two seats the fourth condition says r realization is very important to qualify as export of services if no realization it is not considered as export of services so in case of export of services realization as per session 26 fourth condition very important what is that I have given some Provisions I have given certain RBA Provisions to take you and give you some background relevant RBA Master circular also I have given RBA hler wherever I have given please note every year export of services and goods they are giving circular master circular so whether I have given you 2018 20120 or 2021 there is no much difference normally the circular for export of goods and services and import of goods and services the master circular in general RBA for last four five years no much difference it is continuing so when you summary the realization what I have tried I have taken entire GST law huh some places I have put blue Mark you must have seen in this wherever heading I have given you blue Mark I told you the color it is not my favorite color I have given I have given four different colors for each slide heading four different colors and in some cases no color the color blue means this is applicable to goods and services exports and imports the subject is related to export of service but whenever I have given all complete summary to give you complete understanding because sometimes I feel it is important I need to travel Beyond export of service jurisdiction to give you proper understanding so realization under GST law in two situations they have not insisted you to get get the money it is important as per FMA it is important as for RBA it is important but GST law not discussed on realization what are these two situations I am talking whether it is export of goods whether it is export of service whatever it may be Goods to to scj unit whenever you are supplying any Goods toj unit under Lut Bond Lut bond with refunds under rule 18 of cgst rules in this situation and export of goods to the foreign country Lut Bond Lut under Bond not climbing refunds not climbing refunds in this two situ GST law is not insisting you to get the realization clear second in these two situations I talking total GST law and realization total GST law and realization in these two situations GST law says by what are those situations export of goods or services Nepal and Bhutan Lut Lut with refund rule 89 Lut Nepal Bhutan goods or services refund under rule 96 in this situation law says INR is acceptable because there is a bilateral agreement and Nepal is considered as very friendly country to Indian Country Indian Nation so from the beginning they are having so many bilateral agreements and Indian rupee commonly used for transaction entering Nepal second situation in case of supply of services to Lut Bond or refund under rule 89 in these two situations INR is acceptable under GST law third third slide in two situations in these two situations convertiable foreign exchange is mandatory that is two seats of export of service we have seen this condition fourth condition already we have seen Now by this time you are aware fully what is the fourth condition of export of service it says you should get convertible currency they mandate that to qualified sport of service it says in two situations under GST law convertible currency is important export of goods to foreign country for GST funds 89 or 96 export of services to foreign country other than Nepal Bhutan that already we have discussed in these two situations freely convertible currency is mandatory that means except Nepal Bhutan if you are providing any services to Nepal Bhutan INR should come in case export of services other than Nepal Bhutan you are providing any services from Surat you should get freely convertible currency so fourth condition we have discussed fourth condition of what fourth condition of session two seats of idst of export of services qualification service five conditions there already four we have discussed the fifth condition it says if you merely Supply to distinct person it is not considered as cour of service what is distinct person under GST law distinct person they dealt law says any branch agency representational office treated establishment in the territory that is the law provision now when we apply that law into our day-to-day applications day-to-day issues that means exclusively you are providing any distinct person from Surat from Surat to distinct person of that USA distinct person of USA then it is Exempted and ITC if it is exclusively ITC then it is not allowed if it is a common if you have used that is also not to be allowed both are to be cost last is any distant establishment is situated outside India they treated as a exempt that means the tricky isue here I want to tell you place of Supply is not qualified as outside India then IG is payable under fcm but place of Supply is qualified then exemption hope you understood what I mean to say you are providing any services from Surat to USA distant person it is Exempted by law so ITC required to be reversed not treated as expert of service but place of Supply is not qualified as outside India then the payment will trigger under fcm not exemption so the important point I want to highlight you I want to bring your notice is place of Supply is also important to see this if it is outside India distant person place of Supply qualifies as outside India igst is payable not qualified if not qualified qualified dist person exemption I have given the same thing in table for your simple understanding purpose the same thing dist person India dist person outside India place of Supply outside India exemption available place of Supply India no exemption cost I have given example you can go through whenever you get time that means the example if suppose the transaction is between other than distant person then treated as export but whereas it is a distant person exemption will trigger thereby it requ to be reversible if it is import of services distant person RCM payment but our subject is export of service ITC not available exemption cost that is the summary so with this slides we have covered we have covered entire definition of two seats Supply should be located in India recipient should be located outside India place of Supply should be outside India freely convertible currency realization Supply should not be merely to dist person these five ingredients are important to qualify export of service any single ingredient single leg failure lead to entire export of service failure so that discussion we have made till now now we are understanding we are trying to understand what is nature of Supply igst export of services always igst green color again I tell you some G hint green color means we are discussing export of services it is 75 is not related to import of services or export of goods or import of goods it is only export of services therefore I have put different color exclusively export of services green color valuation valuation this valuation we are discussing different color by this time you must have noticed what how I have prepared 120 slides with what in I have put colors valuation in simple export of goods session 15 will trigger cgst at import of service session 15 will trigger export of service our topic today session 15 will trigger transaction value transaction value import of goods Customs law this already we have discussed in our import of goods webinar two months back this is summary transaction value export of service valuation session 15 will trigger time of Supply if you are issuing invoice date of issue invoice date of receivement of payment not issuing invoice date of provision of service recipent of payment date on which the recipent shows the disputant service boots which is a will trigger advances in case of advances all advances I have covered export of services in case of advanced payment supply of service to foreign country zero rated to be triggered as per session 132 however where IG is paid and further to be claimed as refund under 189 IG is to be paid on Advanced receipt under fcm however the refund of the same can be claimed upon execution of Supply issue of invoice in case where the transaction is not can as export due to place of Supply provision or any specified conditions then GST to be paid on Advance receipt under fcm and would be cost unless it is collected from your customer I have given import of goods I have given export of goods I have given import of service as I told you whenever I found Advan export of service import of goods ofs Serv you may not get comprehensive understanding therefore wherever I found this may create some difficulty to the participants members I thought it is better to give comprehensive understanding though our subject is export of services and wherever I have tried to travel Beyond export of service and given comprehensive understanding of GST law I put with pink color I already told you okay ITC you need to pay ITC some attention if you understand this most of ITC Provisions you can understand transaction recipient of Service Supply of service our topic is export of supply of service export if you are given to related distant person fcm cost this is free service I'm talking the subject is free service export of free services related distinct domestic fcm trade as Supply but not as exports so here recipient of service I have given I talking free services remember this is this slide is for free services free exportation of services or free recipient of services free Services Supply of service export to related or distant fcm treat as a supply but not export fcm and cost treat as a supply if it is a domestic or export if domestic and Export other than related no GST payable being non Supply but ITC to be reversed most most of the people I can say most are not following this leads to compliance issue so supply of service free service domestic export other than related distinct no GST payable non Supply but ITC to be reversed don't forget that domestic export related fcm and fcm cost why I said cost export suppl