GST Refund in case of Export of Services

virag (Account and Tax consultant)   (115 Points)

28 June 2021  

Hello Everyone,

Hope you all are well.

I have one query regarding GST refund in case of export of services.

One of our clients (incorporated as LLP) is providing outsourcing IT services, It is in a legal agreement with US Inc. company where total capital contributed by Inc. company is 99.99 % out of 100. Indian company raises bills to US Inc. company on monthly basis. There is no Indian business/services, only export of services to the USA.

Now, they filed a GST refund application to GST Portal claiming GST on payment to Indian Vendors but the GST department denied a refund on grounds of non-applicablity of the clause - distinct persons.

Please suggest to us how to move further.

Thanks,

Virag