The 52nd GST Council Meeting issued clarification on the export of services.
The Council has recommended to issue a circular to clarify the admissibility of export remittances received in Special INR Vostro account, as permitted by RBI, for the purpose of consideration of supply of services to qualify as export of services in terms of the provisions of sub-clause (iv) of clause (6) of section 2 of the IGST Act, 2017.
Export of Services means when the supplier of service is located in India and the place of supply of service is outside India. Export of goods or services are treated as Zero rated supply i.e., the goods or services exported shall be relieved upon them either at the input stage or at the final product stage. Export of goods or services are treated as inter-state supply in course of business.
The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services.
A duty drawback was provided under the previous laws for the tax paid on inputs for the export of exempted goods. Claiming the duty drawback was a cumbersome process. Under GST, the duty drawback would only be available for the customs duty paid on imported inputs or central excise paid on certain petroleum or tobacco products used as inputs or fuel for captive power generation
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