Indian Companies and Foreign Entities shall be treated as Separate Entities for considering a Supply of Service as Export of Services: GST Council

Indian Companies - Foreign Entities - entities - service as export of services - GST Council - Taxscan

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).

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Related Stories