Question 58:

Following are facts of a case:
1- An individual working in India for a Foriegn Company, rendering services in field of business development and marketting services in India to get more business and client development for the foregin company in India.
2- Billing is done in USD to Foreign company by the said individual as per contract.
3- Foreign company does not has any place of business or fixed location in India.
4- Payment is received in USD in Indian ruppee account of individual in equivalent INR converted amounts.
5- The individual raising invoices has got registered under GST as exporter of Services from mid of April 2018.
So, in order to establish with surety, whether such service and billings thereof to the foreign company would tantamount to export of service or otherwise, be just classified as normal domestic service.

Queries Follow below:
1-
(a) As per definition of export of service u/s 2(6) of IGST Act- all the conditions need to be met including --- that--- place of supply of service must be outside India.
Now, the question comes - what will be the place of supply in given case. Doubt is that, since the services are rendered in India, will the place of supply of service be India, in which case, it should not be classified as export of service and service provider should collect IGST from foriegn recipient of service.
But, as per Section 13 of IGST Act, place of supply, is specifically, provided in specific scenarios, to be location of supplier of service. While if the case doesn`t falls in any of the stated exclusions, the place of supply of service should be location of recipient of service.
Accordingly, contention comes, that in given case, the place of supply of service should be location of recipient of service, which should be the foreign country itself, no matter that the business development services are provided in India.
Hence the Query - Would this service be termed as export of service or otherwise in view of above background.
2- What is the effective date of liability for reporting in GSTR 3B return, full month of transactions after the date of registration.
In Case, the registration is taken w.e.f 24 Apr-18, any foreign remittance received prior to that against bill raised in April, will those also need to reported in GSTR 3B for m/o Apr 18.
3- What is the frequency of refund claim in case of exporter of services. Is it all manual for documents verification or online process is available for review of refund application.
4- Limit of threshold of INR 20 Lakh applies to exporter of services also, or not for purposes of registration.

Answer

As per Section 13(2), the Place of Supply is the " Location of recipient" if the services is not fall in Sub-section (3) to (13). In your case Section 13(8) may apply, the same is as follows:-

(8) The place of supply of the following services shall be the location of the supplier of services, namely:''
(a) services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders;
(b) intermediary services;
(c) services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month.

The definition of " Intermediary Services" as per section 2 (13) of IGST Act is as follows:-


SECTION 2 of IGST Act
(13) 'intermediary' means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account;
In normal course a person engaged in marketing & development finds a customer for his client. If this is a case then it will come under " Intermediary Service" and the Place of supply will be the " Location of Supplier" i.e. India.

You are requested to please go through the agreement entered between service provider & recipient and check whether it comes under the ambit of definition of " Intermediary Service"
if you are not coming under the definition of " Intermediary Service" then it is "Export of Service " because no other subsection applies in your case.


2. Liability to pay GST and applicability of other provisions (return e.t.c.) will be applied from the " Effective date of registration" which are as follows:-

1. where not liable for registration but voluntarily applies for registration:- date of order of Registration/RC
2. where liable for registration
(i) application for registration has been submitted within thirty days from liability to get registered :-- the date on which the person becomes liable to registration
(ii) application for registration has been submitted after thirty days from liability to get registered :- date of order of Registration/RC.

Thus there is no need to report transactions which are earlier of above specified date in GST return.

3. You can claim refund on account of export for each tax period. Now online facility for refund application is available.

4. Vide Notification No. 10/2017 dt. 13.10.2017 'Integrated Tax, Persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act.

As per Section 7 of IGST Act, Inter state supplies also includes " Export" . Thus, vide above notification threshold limit of 20 L also applies to " Export of Service".  (reply dt. 05/08/2018)