Export of services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2017 Dear Expert,

We are advisory firm (Service Sector). Our client and immovable property situated outside India where we have rendered some advisory services. Could you please help out with the Invoice part as to how to raise invoice and points to be considered vis a vis any export formalities? Earlier in Service tax regime, there were no export formalities for advisory services given to client.

Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 July 2017 Raise invoice( not a tax invoice) in foreign currency and mention where the service rendered and to whom

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2017 Dear Sir,

Many thanks for your reply, but any export formalities need to be observed or not?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2024 In the GST regime, when providing advisory services to a client with an immovable property located outside India, the treatment of such services as exports remains crucial. Here are the key points to consider regarding invoicing and export formalities:

### Invoicing for Export of Services

1. **Invoice Requirements**:
- **GSTIN and Place of Supply**: Your invoice should include your GSTIN (if registered) and clearly indicate the place of supply as outside India.
- **Details of Services**: Describe the advisory services provided with sufficient detail to identify the nature of the services rendered.
- **Currency**: Invoices should be issued in a freely convertible currency, typically in the currency agreed upon with your client or in Indian Rupees if permitted by RBI regulations.

2. **Billing Address**: Ensure the billing address of your client reflects their location outside India to substantiate the place of supply.

3. **Time of Supply**: The time of supply for services is generally the earliest of invoice issuance date or payment receipt date, whichever is earlier.

### Export Formalities

Under GST, export of services involves meeting specific criteria to qualify for tax exemption:

1. **Place of Supply Rules**: Since the immovable property is located outside India, and assuming your client is also situated outside India, the place of supply rules align with export of services criteria.

2. **No GST Liability**: Export of services to a client located outside India is typically exempt from GST. This exemption applies provided:
- The supplier of service (your advisory firm) is in India.
- The recipient of service (your client) is located outside India.
- The place of supply of service is outside India.
- Payment is received in convertible foreign exchange or in Indian Rupees wherever permitted.

3. **Export Documentation**: While there are no specific export formalities like those for physical goods, maintaining proper documentation is crucial:
- Keep records of the invoice raised for export services.
- Document evidence of the immovable property being outside India (if applicable).
- Maintain records of payment received in Forex or relevant financial documentation.

### Compliance and Advisory

It's recommended to:
- Review GST provisions and notifications applicable to export of services under GST periodically.
- Seek guidance from a GST consultant or tax advisor to ensure compliance with GST regulations specific to advisory services and international transactions.
- Keep abreast of any changes in GST rules related to exports that may impact your advisory services.

By adhering to these practices, you can effectively manage invoicing and compliance for advisory services provided to clients with immovable property located outside India under the GST regime.

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