GST on Export of Goods & Services

We are moving towards the global economy and India is one of the growing economy that aims to ease the business overseas for Indian entrepreneurs. "Make In India" and other government initiatives and subsidies have inspired further investment in the Export business. So when GST was introduced government has considered the growing export business and accordingly extended some benefits under GST. Let's get some gist of GST on the export of Goods and Services.

DEFINITION OF EXPORT OF GOODS UNDER GST

Sub-Section 5 of section 2 of IGST Act, 2017 defines – “Export of Goods”, with its grammatical variations and cognate expressions, means taking out of India to a place outside India.

DEFINITION OF EXPORT OF SERVICES UNDER GST

Sub-Section 6 of Section 2 of IGST Act, 2017 defines – "Export of Services" means the supply of any service when :

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange (except in the case where the place of supply is Nepal or Bhutan, in that case, INR is acceptable);

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person

TREATMENT OF EXPORT OF GOODS & SERVICES UNDER GST

As per GST Laws Export of Goods & Services has been considered as:

• INTER-STATE SUPPLY (Sec 7(5) of IGST Act 2017): Export is treated as Inter-state supply and such supply would be liable for IGST.

• Zero-Rated Supply (Sec 16(1) of IGST Act 2017): GST would not be levied on Goods or Services which are exported out of India.

ZERO-RATED SUPPLY

Zero Rated Supply means: