Dear Sir, we have one co. in India (IT COMPANY ) with 3 directors out of which 2 DIRECTORS IS NON RESIDENTS INDIAN and we are providing services to a co. outside india ( foreign co. have TWO same director (NRI DIRECTORS) as that in Indian co. We are raising invoice for foreign co. and receiving money in foreign currency, we have showed our invoices as export of services in GST . GST Department persons are telling that it is distinct persons and you cannot show the services provided as exports and pay the GST. Please help on this sir? Whether it is export of service as per sec 2(6) of IGST ATC 2017 or we are liable to pay GST on this service to foreign company having same directors. kindly advice do needful sir 10 day happens still my query is not answered.

Reply—As per Section 2(6) of igst Act, —“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

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

According to explanation no. 1 of section 8 of IGST Act,  for the purposes of this Act, where a person has,––

(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a State or Union territory and any other establishment registered within that State or Union territory,

then such establishments shall be treated as establishments of distinct persons.

In the above case, service provided by the ITC company to a company situated outside India having same directors, cannot be considered as export of service.