Our company is registered in India recently under GST and is engaged in tours & travel services.
Business Model:
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We purchase hotel rooms located outside India (e.g.,Dubai) from an Indian wholesaler/supplier who issues invoice from India.
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We then sell/arrange these hotel bookings to foreign customers (outside India), with payment received in foreign currency.
Query:
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When our company invoices the foreign customer, does this qualify as export of services (zero-rated supply under LUT), since the hotel is outside India and payment is in forex?
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Are there any specific notifications, circulars, or case laws clarifying this type of transaction?
We want to ensure our GST compliance is correct as we are newly registered and would require to keep complinace withoutn errors. Kindly guide on the correct GST treatment at both purchase and sale stages.
CAclubindia
