Sez unit services
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 October 2018
If services provided by SEZ unit to foreign company It is covered under export of services??? .ie.- Warehouse charges, shipping line charges, transportation, Packing charges, CFS charges ,any other SEZ services
Rajnish Singh
(Expert)
09 November 2018
Meaning of Import and Export of Services under GST
“Import of Services” as defined under sub-section 11 of section of IGST Act, 2017 means the supply of any service, when –
The place of supply of service is in India
The supplier of service is located outside India;
The recipient of service is located in India; and
Supplies which do not form part of export of goods or services
Where the place of supply of service is within India but to a person located outside India. For an instance – a property located in Delhi rented out to a person residing in New York; agent residing in India and providing service to a person in Dubai exporting goods to China.
Where the consideration for the supply of services is received in Indian currency or in such a currency other than convertible currency. For an instance, supply of service (consultancy service) by a consulting firm in India to an entity outside India, where the payment made by Indian branch of overseas entity is in Indian rupees.
Supply of services to the foreign branch would not be covered as export of services due to specific exclusion as “export of service”. This could involve reversing the input credits as such supply of service would be considered as non-taxable and not as zero-rated.
The definition of import of service given under GST also excludes services imported from a foreign branch.
“Import of Services” as defined under sub-section 11 of section of IGST Act, 2017 means the supply of any service, when –
The place of supply of service is in India
The supplier of service is located outside India;
The recipient of service is located in India; and
Supplies which do not form part of export of goods or services
Where the place of supply of service is within India but to a person located outside India. For an instance – a property located in Delhi rented out to a person residing in New York; agent residing in India and providing service to a person in Dubai exporting goods to China.
Where the consideration for the supply of services is received in Indian currency or in such a currency other than convertible currency. For an instance, supply of service (consultancy service) by a consulting firm in India to an entity outside India, where the payment made by Indian branch of overseas entity is in Indian rupees.
Supply of services to the foreign branch would not be covered as export of services due to specific exclusion as “export of service”. This could involve reversing the input credits as such supply of service would be considered as non-taxable and not as zero-rated.
The definition of import of service given under GST also excludes services imported from a foreign branch.
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