Place of supply of advisory service

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Satish Mehra (Querist)
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03 February 2025 Hello experts,
What is the HSN code for Advisory and business services..
And what is the place of supply, if these services (Advisory services) were given to a company based in Nepal.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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12 August 2025 Great question! Let’s break it down in two parts: HSN Code and Place of Supply for advisory services provided to a company in Nepal.

📌 1. HSN Code for Advisory / Business Consultancy Services:
For advisory and business consultancy services, the HSN/SAC code under GST is:

9983 – Other professional, technical and business services
Sub-category:
🔹 998311 – Management consulting and management services
🔹 998312 – Business consulting services

Use 998311 or 998312 depending on the exact nature of advisory service.

📌 2. Place of Supply – Advisory Services to Nepal
Let’s apply Section 13 of the IGST Act, 2017, which deals with cross-border/interstate services.

✅ Advisory services fall under Section 13(2):
"The place of supply of services, except the services specified in sub-sections (3) to (13), shall be the location of the recipient of services."

So in your case:
Detail Response
Recipient's location Nepal (outside India)
Place of supply Nepal
Nature of transaction Export of Service, if conditions met
GST applicability Zero-rated, if qualifies as export

✅ 3. Conditions to Treat it as Export of Service (Section 2(6), IGST Act):
Supplier of service is in India ✅

Recipient is outside India (Nepal) ✅

Place of supply is outside India ✅

Payment is received in convertible foreign exchange or INR as permitted by RBI ❗

Supplier and recipient are not merely establishments of same person ✅

If all 5 conditions are met, then:

It is an export of service

You can treat it as zero-rated supply

You can claim refund of unutilized ITC (if applicable) or do supply without payment of GST under LUT

❗Important Note (on Nepal & INR payments):
Nepal is allowed to settle trade in INR.

RBI permits INR for export of services to Nepal — so payment in INR from Nepal is allowed and still treated as export.

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