EXAMPLE-7
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 EARLIER 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.