GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF D) DEPARTMENT OF TRADE AND TAXES _ POLICY (GST) Branch VYAPAR BHAVAN:LP.ESTATE:NEW DELHI-02 F. No, 3(250)/Policy-GST/2019/ \\(g- 74 Dated: }] 03/2019 Circular No. 02/2019-GST (Ref: Central Circular No. 78/52 /2018-GST) Subject: Clarification on export of services under GST— regarding Representations have been received seeking clarification on certain issues relating to export of services under the GST laws, The same have been examined and the clarifications on the same are as below:
SL No.
Issue | Clarification In case an exporter of| 1, Where an exporter of services located in India Is services outsources a portion | supplying certain services to a recipient located of the services contract to | outside India, either wholly or partly through any another person _ located | other supplier of services located outside India, the outside India, what would be | following two supplies are taking place:- the tax treatment of the said (i) Supply of services from the exporter of portion of the contract at the services located in India to the recipient of hands of the exporter? There services located outside India for the full may be instances where the contract value;
full consideration for the| (ii) Import of services by the exporter of services located in India from the supplier of services located outside India with respect to the outsourced portion of the contract, outsourced services is not.
received by the exporter in India, Thus, the total value of services as agreed to in the contract between the exporter of services located in India and the recipient of services located outside - xport of services if, sidered as © be ae in section 2(6) of the Integ ee 5 Tax Act, 2017 (IGST Act § 13(2) of the IGST Act India will conditions Goods and Service short) read with section satisfied.
supplier of services located in reverse 2 It is clarified that the be liable to pay integrated tax on services on that portion ded by the supplier India would | charge basis on the import of | of services which has been provi 0 the recipient of services |Hocated outside India t | Nocated outside India. Furthermore, the said supplier | of services located in India would be eligible for taking input tax credit of the integrated tax so paid.
3. Thus, even if the full consideration for the services | in | | | as per the contract value is not received convertible foreign exchange in India due to the fact | that the recipient of services located outside India has directly paid to the supplier of services located | Outside India(for the outsourced Part of the services), | that portion of the Consideration shall also be treated | | a5 receipt of consideration for ©xport of services in | terms of section 2(6)(iv) of = ) of the IGST Act, provided | i 5 @) integrated tax has been Paid by the | @pproval has allowed that 4 Part of the Consideration for such €XPorts can be Tetained Outside India.
| the IGST Act are not fulfilled with Tespect to the | realization of Convertible foreign exchange, say only | 60% of the consideration is received in India and the remaining amount is directly paid by the US based | client to XYZ Ltd, Mexico, even in such a scenario, | 100% of the total Contract value shall be taken as | consideration for the export of services by ABC Ltd.
India provided integrated tax on import of services | has been paid on the part of the services provided by | XYZ Ltd Mexico directly to the US based client and RBI (by general instruction or by specific approval) | has allowed that a Part of the consideration for aah ‘ f sued to publicize the contents 0} be i 2. It is requested that suitable trade notices may - broughtto the notice
3. Difficulty if any, inthe implementation of this Circular may Be Of the Policy Branch, aS (H.Rajesh Prasad) Commissioner (GST) ' 019 F, No, 3(250)/Policy-GST/2019/ teg-7y Dated: J) 03/2 Copy forwarded for information and necessary action to:
1) All Spl./Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I,P.Estate, New Delhi-02.
2) Special Commissioner (PR), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P-Estate, New Delhi-02 for wide publicity of the contents of this circular, Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P. Estate, New Delhi-02 for uploading the circular on the website of the Department.
4) The President/General Secretary, Sales Tax Bar Association (Regd.), Vyapar Bhawan, I.P, Estate, New Delhi, 5) All Assistant Commissioners/GSTOs, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P. Estate, New Delhi-02. Hasngh Zorral Ynurayes 6) PS to the Commissioner, GST, Department of Trade and Taxes, GNCT of : Delhi Vyapar Bhawan, LP. Estate, New Dethi-02, \ 7) Guard File.
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Assistant Comialssinne ysethioge) GOVERNMENT OF NATIONALCA DEPARTMENT OFT VVAPAR BHAVAN:LP.ESTATE:NEW i FE No. 3(66)/Policy-GsT/201>/ QS -lorw Dated: 35/04) 2018 Circular NoJQ /20 i8-¢sr © Re (Ref: Centrai Circular No, *1Ai)2018-¢87) : j Subject: Procedure fur interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and coabepicess reat Sub-section (1) oF section 68 of the Delhi Goods and Sorvices Tax Act, 2017 (hereinafter referred to“as the DGST Act") stipulates that the Person-in-charge of conveyance any consignment of goods of Value exceeding a specified amount shall carry with him the documents and devices Prescribed in this behalf Sub-scetion (2) of the said section States that the details of documents Tequired to he carried by the Person in charge of the conveyance shall be'vatidated in such manne: as inay be prescribed. Sub section (3) of the said section Provides that where any cony ce referred to in sub-section (1) of the said-section is intercepted by the Proper officer st any place, ‘he may Tequire the pérson-in-charge of the conveyance to produce the documents for verification, and the said Person shall be liable to Produce the documents tind also alow the inspection of poods.
1.1 Rules 138 to 138D of the Delhi Goods and Services Tax Rules, 2017 (hereinafter toleired to as the “Deihi Rules”) Ioy down, in derail, the provisions relating fo eWay bills As Per the said provisions, in case of portation of goods by roud, an c-way bill is required to be genemted before the commencement of movernent of the consignmeni. Rule 138A of the said rules, that the person incharge of x coaveyinee shall carey the invoice or bill of ‘Supply. very challan, as the ctise ray be; and in case of | tnuisportation of goods by road, besshali carry.a copy of the e-svay bill in physical form or the e-way bill number in eetronic form or mapped 19 a fadlio Frequency Identification Device embedded on to the ich manner as,may be notified by the Commissioner.
9 of the DEST Act provides for detention, seizure and release of goods nd pe ‘section 130 of the DGST Act provides for the confiscntion of i Under section @
(b) ()
(d) - wwers conferred fT elie agn a Ree ROE officers, n lowing instructions: 168 (1) of the DGST Act, hereby issues the folloy : i is purpose shall by an order, {he Commissioner or an officer authorised ee interception and ‘esignate an oficeroficers a te proper office ‘sions of sections 68, 129 and , of conveyainces and goods under the prov’ ach onder: 1M ofthe DGST Act in the jurisdictional area specified in nveyance, may intercept aay chet fcr empoered to interepand inspect aco isl ot aoecie’ On beta ny Sonveyance for verification of documents and/or ae es hss Uaicainonts intercepted, the person Incharge of the conveyance shall prod Reeth eck related to the goods and the ene The ee sar conveyance shall docu i il s incropancies be St ba nek ee bill number moy be available with the a 1M charge of the conveyance or {in the form ofa printoxt, sms or it may be os an invoice, Aj] these forms Of having’an e-way bill one valid. Wherever a faci nef CXISIS to verify the way bill electronically, the same shall be so verified, cither by Jogging on to bup; in or the Mobile App or through sms by sending EWBVER “EWB_NO> to mobile nun:ber 77382 99899(For c.g, EWBVER 120100231897), For the purposes of verification of the e-way bill, interception and inspection of the Sonveyance ind/or goods, the proper officer under sule 1388 of the DGST Rules Where the peran tocharge of the Soniveyance fails {0 ‘produce any prescribed document o¥ Where the Proper officer intends to undertake an Inspection, he shal] Pecord u stutement of the person incharge of the cany “ance in FORM. GST Moyln addition, the proper Officer shall ie in order for physical verificationinspection of the Conveyance, goody and documents in FORM GST MOV-12, fequining the person in char;
Poge | 2, “s 7 rd 4m 2 wip, ee Yana "© ““01vthe-common portals he’ final rgporof the inspetkion ie: Fare h Ev neon es croc and penalty has been paid in accordance with the provisions Of the DGST Act and ‘the DGST Rules; release the Boods tind conveyance by wn order in’FORM GST © “MOV-05; Further, the order in FORM GST MOV-09shail be uploaded on the ~~ Scotiinion' portal and the demand accruing from the proceedings shall be added in the ‘electronic liability register and the paymentmade shall be credited to stich electronic Alability register by debit ng the electronic cish ledger or the electronic credit ledger OWof the concemed person in accordance with the provisions of section 49 of the S| DGST Act.
(i) * Where the owner of the coods, or the person authorized by him, or dny person other ethan the owner of th: ods comes forward to get the goods and the conveyance ‘released by furnisliing a <ecurity under clause (c) of sub-section (1 ) of kevtion 129 of the DGST Act, the goods nnd the conveyunce shall be released, by an order in FORM GST MOV obtaining 4 bond in FORM GST MOV-O8along with » © -Seeurityin the form of bunk guarantee equal 10 the amount payable under elouse (a) or clause (b) of sub-scetion (1) of section 129 of the DGST Act. The finalisation of "the procéedings under section 129 of the DGST Act shall be taken up on priority by the officer concemed and the security provided muy be adjusted against the demand _ | atising from/such proceedings.
~ G) Where any objections’ we filed against the iproposéd: amoiint of tax and penalty FORM GST MOV-09, quantifying the tax snd penalty payable, At of stich tax and penalty; the goods and conveyance shall be relcased by aiorder in FORM GST MOV-05.The order in FORM GST MOV- uploaded on the common portal and the demand accruing from the order sd in the electronic liability register and, upon’ payment of the demand, Shall be crectited by either’ debiting the electronic cash ledger or the ‘of the concerned person in ficcordance with the provisions of P Act = € ad penalty are not paid within seven duys from the date of ‘of detention in FORM GST MOY-06, the action under i ae Page. 3 fruitt i tice in FORM GST Section 130 of the DGST Act shall be initiuted by:serving a no} 2 ; MOV-16, proposing confiscation of the goods und conveyance and imposition of penalty. . e (> Where the proper officer is of the opinion that such movement — i effected to evade payment of tax, he may directly invoke section 130 of the Act by issuing w notice proposing to confiscate the goods and conveyance in FORM 'T MOY-10.In the said notice, the quantum of tux and penalty leviable under Section 1300f the DGST Act read with section 122 of the DGST Act, and the fine in Jicu.of confiscation loviable under sub-section (2) of section 130 of the DGST Act Shall be: specified, Where the conveyance is used Jor the carriage of goods or Passcnyers for hire, the owner of the convesunce shal! also be issued a notice under vil ‘the DGST Act, proposing to the third proviso to sub-section (2) of section 130 o th Proposi impose: fine equal to the tax Payable on the goods being transported in lieu of FORMGST MOy-11, after crson incharge of the goods Shall be served on the Person concemed, the title of such R00ds shall stand I. In the szid. order, a suitable time not Conveyance hall be passed in FORM GST MOV-11, afer tuking into consideration the objections filed by the person incharge of the ie ___-Fotiveyance and the same shal} be served o) cemed. Once the order of Stind transferred to the 4 suitable time not exceeding f penalty and fines imposed in Hotice of the State Tex Commission F. No. 3(66)Policy-est/2017) V8-/oL Copy forwarded
(q) () Suitable modifications in the time allowed Suction or disposal shalt be applied in case (s) Whenever an order or iroccedings under officer, a Corresponding order or CGST Act and if applicable, under ihe Goods States) Act, 2017, Further, sub-sections Acts may be refecred to in case ‘The procedure narrated above shall b Proceeiling under the IGS’ Act, 2017, (u) Demand Of any tax, Pevalty, fine or other charges shall be Hiability ledger of the person sencered, In case where no electronié’ is available in case of an Unrevistered person, 9 temporary ID shall Proper officer on the common portal and the liability shall be creuted shall also credit the payments made towante such demands of tax, penaliy and other charges by debiting the slectronic cash ledger of the concemed person, (%) A’semmary of every onler in FORM GST MOV-09 and FORM GST shalF'be uploaded clecirc 'n FORM GST-DRC-07 on the common portal The format of FORMS G3'T MOV-01 to. GST MOY-11 are annexed to this Cireutar,, tation of the above instructions brought to the at an early date, C3) Difficulties, if any, in imple (H. RAJESH PRASAD) Commissioner, State Tax Dated: 25 04/2018 /Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of oy (IT), Department of Trade and Taxes, GNCT of Dalhi.
The President/General for information and necessary action to:
[ Sales Tax Bar Association (Regd), Vyapar aie Crerecastos, Deptt. of Trade and Ti ‘of Dethi, STATEMENT OF THE OWNER / DRI OF THE GOODS AND Statement of S: 1 at owner / driver / person- c bearing No, (Vehicle Number) rade (Designstion of the proper officer) on v at (place).
Today, you have intercepted the ubove mentioned conveyance and identity, you have requested me ty produce my credentials and the goods in movemient for your verification. 7 In this regard, | hereby declare the following.
Engine No, flocuments wo correct.
which I have i 5 this except the documents mentioned in the Annexure to 7m to you, there are no other documents with me or in the:
fy movement, Sal ‘S74 ee We ain ‘ = on "Rake Peis Ae ict : Dade. es + red 0 Seibert has under requ!
section (3) of section 68 of the Delhi Cioods and Services nnd Services Tax Act, 2017 Gr under section 20 of ‘Act2017 for the following reasons.
(its quantity 8) adler tendered documents req verification, — E-Way bill not fendered for the gods in movement a Others (Specify) Hence, you are hereby directed,- ;
qa) De aekoa the conveyunee carrying goods a (place) at your own risk and responsibility, i
(2) to allow and assist in physical verificntion and inspection of the goods in movement 1c at which it is stationed until with the goods in question. 3) not to move the farther orders and not t0 p et and related documents, ak sever hom the phae Ve ‘The Conveyance’ a fime) at Place) and the same Glace) for inspection by serving an Order in FORM person in charge of the conveyanee.
AV Hoe Gages atin hns requested for extension of ime for condhting the goods and ‘conveyance for the following reasons: :
Pe ete onmee “ in eS \ thins 1 examined and the same is found to be reasonuble.
‘The request of the proper officer hes been tion is hereby extended for # further period of The time period for conduct oF Inspec te _ days.
The The proper officer is hereby dirested to serve a ae ;
copy of this onder on the person! in charge of the conveyance.
JOINT/ADDL. COMMISSIONER, > Description of Quantity goods inthe | sper | physical | Diff. conveyance invoice | verificati on m Fees tuailioned abuve las bos cea ee (hs report are tre and correct, J Signature of the Owner / } Porson- in- charge a Signature { Designation of the Proper Officer, ACKNOWLEDGEMENT :
Thereby duly declare that Uhuve received a copy of the above <eport of physical verification. ” Signature of the Owner / Person-in-charge was issued in FORM GST MOV-06 on.
M-GST MOV-07 was scrved on the person in change of Whe Gauveyenes ak : . The owner or person in charge of the conveyance hasitor! end made the payment of tax and penaliy as proposed and is drawn in this regard, payment of tax and penalty as demanded in the order in FORM GST 4orward and fimished a bond in FORM GST MOY-08 along with the “guarantee forthe amount cquivalent to the tax and penalty proposed.
or Conveyance bearing No. carrying goods was inspected and designation) on _ and afier inspection and due process, tin order of confiscation of goods and conveyance was GST MOY-11 ond served on the owner/person in charge of the . The owner/person-in-charge has come forward ent of tax, penalty, fine in lieu of confiscation of goods nnd above, the as und conveyance are hereby released on M in good condition.
Signature Designation of the Proper Officer, GOVERNMENT OF NCT-OF DELHI STATE TAX DEPARTMENT a nai Mee eT v= und time) AM/PM.. At the time of interception, driver! person: in-charge Of the goods/ conveyance is Shi pat) He ORD Tp Se ps can The ot has not tendered any goods in movement Sage documents tendered are found to be defective | a in transit (its quantity etc) and/or tendered documents requiresfurther For the abave said reasons, an order for physical verification / inspection of the conveyance, goods'and documents was issued in FORM GST MOV-02 datel and served on the owner/driver‘person- in- charge of the conveyance. Aphysical verification and inspection ‘of goods in movement was conductedon, by __ (name and designation) in the presence of the owner/driver/person- in- charge of the conveyance e Shri_ and a report was drawn in FORM GST MOY-04.The following discrepancies were noticed.
a i? To, Shei Driver Peon io- charge le/Convey: No:
3 A g syance No:
< 7 “Wiiveriperson- in: ‘charse of the conveyance is “hereby directed to station the conveyance — (place) it his own risk anid Tesponisibility and not to part with any goods, a ‘he issue of release ruc in FORM GST Moy-05, Signature Designation of the Proper Officer FT 9, gee , ‘ ;
“The conveyance bearing No intercepted (Nome of the proper officer’ n (date) at_——_(time) pee of the driver/personincharge of the vehicle was recorded on (Gate), goods in movement were inspected under the provisions of sub-section (3) ' fthe Delhi Goods and Services Tax Act, 20\7read with sub-section (3) aes ral Goods and Services Tax Act, 2017 or under section 20 of the Integrated Goods vs Tax Act, 2017 read with sub-section (3) of section 68 of the Central Goods and Tax Act}2017 on __ (date) and the'following discrepancies were notived:
im vof the above. the goods und the conveyance used for the movement of goods were ander sub-section (3) of section 6S of the Delhi Goods and Services ‘Tax Act, Pgub-sedtion (1) of section 129 of the Delhi-Goods and Services Tax Act, 2017 read
(3) of section 65 oft Central Goods and Services ‘Tx Act, 2017 or under 0 of the Integrated Goors ahd Sorvices Tax Act, 2017 read with sub-section (3) of Of the Central Goods wail Services Tux Act, 2017 by issuing an order oi detention GST MOV 06. sad the sume was sevved on the person in. charge ‘of the coon (date), gion (1) of section 129 of the Dethi Goods and Services Tax Act, 2017 provides for of goods and conveyst detained on the payment of tax and penalty as under:
one hundred percent of the tux payable on such forward to pay such tax and penalty.
and penalty equal t the fifty per cent of the value of the goods reduced ‘paid thereon under ihe Delhi Goods nnd Services Tax Act, 2017 and ‘Services ‘Tax Act calculated separately or the applicabte tax and penalty goods reduced by the tax amount paid thereon under the Pa “Act, whare the owner of the goods does not come for ward to pay étax and penalty equal to ‘owner of the gocds comes and Services Tax Act, 2017 129 af the Delhi Goods equivalent 10 the amount famishing of a security * page |14 ~ Payable under sar rela (ofthe sid subsections icted sup t() of para 4 abovein FORM GST MOV, & The cleulaton of proposed tnx and pelt is asunder 1) CALCULATION OF APPLICABLE TAX RATE OP TAX 2) CALCULATION OF AP PLICABLE PEN ALTY UNDER CLAUSE (a) oF SUB- SECTION (8) OF SECTION 129 RATE OF TAX 3X CALCULATION OF APPLICABLE PENA SUB-SECTION “TY UNDER CLAUSE () OF SECTION 129 ;
uate naee acee decid east rds and on terits, “