Place of Supply for online tuition services

This query is : Resolved

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This discussion clarifies the Place of Supply rules for online tuition services. For students outside India, even if payments are made in Indian Rupees via NRE/NRO accounts, the service is considered an export if the student's location is abroad and payment is permitted by the RBI. If these conditions aren't met, IGST is correctly charged on inter-state supply, marked as 'other taxable territory'. For students within India, CGST and SGST apply.

jobins babu

jobins babu (Querist)
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27 October 2025 Firm is engaged in online tuition to students in india and outside india. Its one to one live session only. No recorded classes. Students are charged on hourly basis. Invoices are raised to the address given at the time of registration. Most students are out of india, they are giving address of their present location.Since the most parents are from india they are transferring the fund from their nre a/c or nro a/c.firm is not receiving money in foreign currency. Invoices are raised showing that address and firm is charging IGST at 18%. Such invoices are shown in gstr1 as place of supply other taxable territory (code97).Kindly advise this procedure is correct and for the students address to prove the location whether any other supporting documents to be kept in hand.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2025 Export of Service Criteria:
To qualify as an "export of service", ALL these conditions must be met:

Supplier is in India.

Recipient is outside India.

Place of supply is outside India.

Payment is received in convertible foreign exchange or in Indian rupees wherever permitted by the RBI.

Supplier and recipient are not merely establishments of a distinct person.

Key Point: If you're not receiving payment in foreign currency (but via NRE/NRO in INR), you do not qualify for export of service unless RBI permits such INR remittance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2025 If not qualified as "export of service", IGST is correctly charged on inter-state supply (place of supply outside India), shown as "other territory".

For Student in India payment in INR Place of supply India charge CGST + SGST

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