GST Implications
This query is : Resolved
Shobhit Jain
(Querist)
11 December 2019
A company is providing Courier service from Hongkong to USA to a client based in USA. Billing for the same is to be done in name of US client and payment will be received in foreign currency.
Whether it will be considered as export of service??
What difference will it make if payment is received in Indian currency, other conditions remain same?
Whether it will be considered as export of service??
What difference will it make if payment is received in Indian currency, other conditions remain same?
CA Anita Bhadra
(Expert)
11 December 2019
In case the company providing courier company is India based company & GST registered in India , sec 13(9) of IGST Act will be applicable for ascertaining place of supply :-
.
As per section 13 of IGST Act - In case location of supplier or location of recipient is outside India:
The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.
FOR COURIER - , the place of supply of services shall be the location of the recipient of services.
Thus , it will be considered as export of services
However , if payment is received in Indian currency , it will not be considered as export of services as the export of service needs to fulfill 5 conditions. One of those conditions is that the payment should receive in convertible foreign currency
.
As per section 13 of IGST Act - In case location of supplier or location of recipient is outside India:
The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.
FOR COURIER - , the place of supply of services shall be the location of the recipient of services.
Thus , it will be considered as export of services
However , if payment is received in Indian currency , it will not be considered as export of services as the export of service needs to fulfill 5 conditions. One of those conditions is that the payment should receive in convertible foreign currency
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