Zero rated supply [Resolved]

This query is : Resolved

Akhil (Querist)

17 January 2019 Hi,

A event management company is in india who organise events outside india whoes client is outsiders ( Foreigners)
should we pay GST on these transaction and categorised in zero rated supply or not.
what type of documents we require.

With regards

SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)

17 January 2019 Sir, if the payment is received in convertible foreign exchange, then it is a zero rated supply and u can make such supply either under LUT or Bond without payment of tax and take refund of unutilised ITC on goods and services or make such supply on payment of tax by utilizing input tax credit and take refund of the tax so paid.
Thanks and regards
CA Shubham Sharma
Contact no-9462302922
email-shubham.vnv@gmail.com

Akhil

Akhil (Querist)

17 January 2019 Hi Shubham,
My question is about Zero Rated Supply .If I am receiving amount by client in INR
Not in another foreign currency .

What can we admit this as zero rated supply ?
Thanks

Udaya Chandran

Udaya Chandran (Expert)

18 January 2019 According to section 2(6) of IGST Act, services are qualified as exported only if the following conditions are satisfied:
(i) the supplier of service is located in India; - Safisfied
(ii) the recipient of service is located outside India; - Satisfied
(iii) the place of supply of service is outside India; - Satisfied
(iv) the payment for such service has been received by the supplier of
service in convertible foreign exchange; and - Not safisfied
(v) the supplier of service and the recipient of service are not merely
establishments of a distinct person in accordance with Explanation 1 in
section 8; - No information

Since all the above conditions are not satisfied, the services are not considered as zero rated supplies.

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