The GST Council, in its 45th meeting, has issued a clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services.
The Council has decided that the companies registered under the Companies Act, 2013 and the entities registered under the laws of a foreign country shall be treated as two separate entities for considering a supply of service as export of services.
“A person incorporated in India under the Companies Act, 2013 and a person incorporated under the laws of any other country are to be treated as separate legal entities and would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for considering a supply of service as export of services,” the Government said in a press release.
A circular clarifying the same shall be released soon from the Ministry and the Central Board of Indirect Taxes ad Customs (CBIC).
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