EXPORT OF SERVICES

For example: Chetan IT Consultants in Kolkata, West Bengal provides consultancy services  for consideration of Rs. 5 lakh to IT Company in Dubai. The payment for the service has been received in Dirham.

Answer: - Supply of services shall be treated as supply of services in the course of inter-state trade or commerce according to section 7(5) of IGST Act because

Location of supplier: Kolkata, West Bengal

Location of recipient: Dubai

Place of supply: Place of supply will be the location of the recipient, i.e. Dubai

PARTICULARS  INVOICE  VALUE UNDER CURRENT TAX SYSTEM AMOUNT (Rs)    INVOICE VALUE UNDER GST AMOUNT (Rs) 
     
VALUE OF SERVICES UNDER CUSTOM                           500,000.00                                        500,000.00
Add Service tax   NOT TAXABLE   
Add Swatch bharat cess(0.5 %)                                             -    
Add krishi kalyan cess (0.5 %)                                             -    
Add Integrated tax @19% ( CGST+SGST)                                             -    Zero rated 
TOTAL VALUE OF EXPORT                           500,000.00                                        500,000.00
     
     
     

 Note :- Refund of ITC of input in the current and GST System Subject to conditions.