Circular No. 161/17/2021-GST N1
F. No. CBIC-20001/8/2021–GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, dated the 20th September, 2021
The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)
Madam / Sir,
Subject: Clarification relating to the export of services-condition (v) of section 2(6) of the IGST Act 2017–reg.
Various representations have been received citing ambiguity caused in the interpretation of Explanation 1 under section 8 of the IGST Act 2017 in relation to condition (v) of export of services as mentioned in sub-section (6) of the section 2 of the IGST Act 2017. Doubts have been raised whether the supply of service by a subsidiary/ sister concern/ group concern, etc. Nof a foreign company in India, which is incorporated under the laws in India, to the foreign
company incorporated under laws of a country outside India, will hit by condition (v) of subsection (6) of section 2 of IGST Act.
2. The matter has been examined. In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issue in succeeding paragraphs.