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Place of supply Determination for services

22 April 2021

If a consultancy service is provided to a company incorporated outside India, whereas consideration is received in India In INR whether GST is payable or not?

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 22 April 2021

Yes, you would be liable to pay GST. A supply is treated as an import of service if the following conditions are satisfied: (1) the supplier of service is located outside India; (2) the recipient of service is located in India; and (3) the place of supply of service is in India.

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 22 April 2021

I guess the above answer is real, but what will be the scenario if I go to US, my partners in India will buy rice on cash and transport them to US and I will sell them there. IGST is not applicable right?

Baskar (CMA) (93 Points)
Replied 22 April 2021

GST not applicable on consultancy services rendered out side India.Only Income Tax is applicable.

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CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 22 April 2021

Where services are provided from India to foreign consideration will be received in India. However it will be classified as export of service if all the conditions are satisfied. If not then special emphasis will need to be given to section 13 of IGST Act. If Place of Supply is outside India then no GST if POS in India then GST will be applicable.

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