Qualification under 'merely establishments of a distinct person'-CBIC explains

September 20, 2021

CBIC endeavors to clarify ambiguity surrounding the interpretation of explanation 1 to Section 8 of the IGST Act, 2017 read with condition 5 of Section 2(6) of the IGST Act, 2017 -  export of services - Circular 161/17/2021-GST dated September 20, 2021.

This circular addresses doubts on whether the supply of service by a subsidiary/ sister concern/ group concern, etc. of 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, be affected by condition (v) of subsection (6) of section 2 of IGST Act.