Export of service

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
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12 July 2019 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?

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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12 July 2019 No PQR is not liable to pay GST..

It is treated as Export of Service as per section 2(6) of IGST Act (All the conditions are satisfied in your case for export of service)

Now as section 13 of IGST Act- Place of service is also outside India

Section 16 of IGST Act- Export of service treated as Zero Rated Supply