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    Certain services classified under export of services under GST

    Posted By : SHALU / Published on : 18-Jan-2023 09:02 AM / View : 238 / Comment : 1

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    An Indian Pvt Ltd co. engaged in certain services classified under export of services under GST.

    The company received advance worth 2cr from an overseas customer in March 2020 in USD in their bank account as advance against the travel-based services to be provided. From March 2020 the international travel ceased so, the company has not provided any services for last two years to the said client.

    The issue : How will the above advance be treated under section 73 and Deposit rules.

    -Whether it falls under Public Deposit/Loan

    -Whereas it's simply a business advance against services to be provided in future but outstanding for more than 365 days.

    -What options the company has to not the same be treated as deposit/loan.

    Please give resolutions
    Read more on : under services export classified certain

    • Under GST, certain services are classified as export of services when they meet certain conditions and are provided to a recipient located outside India. Such services are eligible for zero-rated tax treatment, meaning that no GST is charged on the services and the exporter can claim a refund on any input tax credits.

      The conditions for a service to be classified as export of services are as follows:

      1. The service must be provided to a recipient located outside India.
      2. The payment for the service must be received in convertible foreign exchange.
      3. The place of supply of the service must be outside India.
      4. The supplier of the service must not have a place of business in the country where the service is being provided.

      Examples of services that may be classified as export of services under GST include:

      1. IT services such as software development, website designing and maintenance, data processing and analysis, etc.
      2. Professional services such as consulting, legal, accounting, architectural, engineering, etc.
      3. Marketing and advertising services provided to overseas clients.
      4. Training and education services provided to overseas students or institutions.
      5. Research and development services provided to overseas clients.

      It is important to note that the exporter of such services must obtain a GST registration and comply with all the necessary rules and regulations, including filing of GST returns and claiming refunds, if applicable.

      31-03-2023 / 10:58:19 AM
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