Technical & sales support services to a foreign company

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This discussion clarifies GST applicability when providing technical and sales support services to a foreign company, with payments in foreign currency. The consensus is that such services are considered an export and therefore zero-rated. You can either pay IGST and claim a refund or use a Letter of Undertaking (LUT) to export without upfront GST payment. You can also claim refunds for accumulated Input Tax Credit (ITC).

RA (Querist)

15 September 2020 Hi Friends.
Need you advise & thanks in advance !
We plan to provide technical / sales support services to a foreign company. The payment is in foreign currency.
-Please advise if GST will be applicable on it.
-If yes, then at what rate.
- If no, will it be because it will be considered a Zero rated supply (ie export ) or an Exempt / Nil rated supply.
Thanks !

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 September 2020 GST applicable if such services provided in India.

Lekhraj sood

Lekhraj sood (Expert)

15 September 2020 Yes, it will be export of services.You have to pay IGST or can execute LUT and export without payment of GST.You can claim refund of IGST so paid or you can also claim refund of ITC if accumulated.

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