Place of supply of advisory service

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Satish Mehra (Querist)

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.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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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