Section 2(6) of IGST Act: Meaning of “Export of Services”
As per Section 2(6) of the Integrated Goods and Services Tax (IGST) Act, 2017, unless the context otherwise requires, the term “export of services” has been defined, as under:
Section 2(6) of IGST Act: Definition of “Export of Services” (CHAPTER I – PRELIMINARY)
“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 [or in Indian rupees wherever permitted by the Reserve Bank of India]$1; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.
$1. The words inserted vide IGST (Amendment) Act, 2018, however commencement date is yet to be notified. Thus, the condition has been relaxed and remittances can be in Indian rupees in cases wherever permitted by RBI.
The Integrated Goods and Services Tax (IGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Integrated Goods and Services Tax (IGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the IGST Amendment Act, 2018 itself.