Service export - Bhutan - query on GST
We run a training consultancy firm in Kolkata, India ( Legal entity is partnership firm) and is registered for GST. Have conducted a training for Government of Bhutan . The training program was conducted in Delhi, India and the payment was initiated by Govt. Of Bhutan directly to our Co. current Account. Can this be treated as service export ? If yes, are we exempt from paying GST for this particular transaction?
Asked 4 months ago in GST from Kolkata, West Bengal
At the time of providing service, the service provider, service receiver and place of service was in India. It should be treated as normal supply of service and you are liable to pay GST.
Since the place of supply of service is Delhi it is not an export of service. Moreso the amount paid by Bhutan govt would not have been initiated in foreign exchange. For exports the place of supply of service viz. Place of consumption of service should be outside India and amount should be received in Foreign Exchange.
You will be liable to pay GST for this transaction
No, this won't be treated as export of services as all the conditions of export are not satisfied. The place of provision of service is in India and hence, cannot be considered as export of services.
GST, as per the normal rules, shall apply.
As per notification 42/2017 dated 27th Oct 2017, supply to Nepal and Bhutan will be treated as export of services and thus exemptedfrom GST
Since in your case, place of supply of services is in India, it does not qualify for export of services.
Hence, you would be liable to pay GST.
If Training services rendered exclusively for Bhutan government then it will be treated as an export of services and you will not be required to pay GST but you could have complied with Bond/LUT provisions under GST Law.
If at a same time you trained other person( Organisation of Educational Event) located in India then place of supply will be india and it will not be treated as Export of services.
CA Varun Chawla
Hope you are doing well !
As mentioned by you, the place of supply of services is in Delhi (India). So, this won't be treated as export of services.
You will be lible for pay GST as per rules.
Thanks & Regards,
As per your question, the place of supply will be Delhi. Therefore,it will not be considered as export of services.
For Export of services following condition should be satisfied
1. Services Provider should be situated within the India
2.Service Receiver Should be outside India
3. Place of supply should be outside India
4.Consideration should be received in Foreign Currency.
In your case 3rd condition is not satisfied due to which it will not be considered as export & it will be taxable same as interstate transaction.
For any further clarification feel free to contact
Since place of supply is India,and service is also received in India so it will not be export of services.
Services given to foreign diplomatic missions located in India is exempt.
by the way this wont be service export since place of supply is in India.
Since the place of supply was India, it cannot be treated as Export of Services and you will be liable for GST.