Krish Biotech Research (P.) Ltd. – 2019 (30) GSTL 345 – (A.A.R. – GST – Karnataka)

Tax invoice is required to be issued for the supply of service, even when the recipient of such supply is a person located outside India and the consideration is received in convertible foreign exchange.

Facts: In this case, the applicant proposes to commence business of technical testing and analysis services of chemicals and customer to whom such service is proposed to be provided may either be located in India or outside India. The customer makes available some quantity of material (test item) on which testing and analysis will be carried out. Additionally the customer shall also provide Material safety data sheet, Certificate of Analysis and Test item data sheet.

Issue:
Whether the applicant is required to issue a tax invoice for the supply of service made even when the recipient of such supply is a person located outside India and the consideration is received in convertible foreign exchange.


Held:
The AAR Karnataka has ruled that it is clear from section 31(2) that a registered person supplying a taxable service shall issue a tax invoice, unless exempted by the Government by notification. Hence the applicant is required to issue an invoice as required under section 31(2) for the supplies made the applicant for the supply of service made even when the recipient of such supply is a person located outside India and the consideration is received in convertible foreign exchange.

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