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Place of supply of online webinar to foreign persons located outside India

JPFF (Student) (38 Points)

12 August 2020

Mr. B a qualified doctor is conducting online training/seminar (Webinar) to other professional doctors located outside India. Does this qualify as export of service ? What will be the place of supply of service ?

As per section 13(2) of the IGST Act 2017 (General rule) where subsections (3) to (13) do not apply, the place of provision of service shall be the LOCATION OF RECIPIENT OF SERVICE .(Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services.)

Am I right in thinking that none of the subsections (3) to (13) of section 13 apply to Mr. B and that the supply qualifies as export of service ?

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4 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 13 August 2020

Yes you are correct if we skip the first Proviso under section 13(3)(a) of the IGST Act , reproduced as under :
Provided that when such services are provided from remote location by way of ELECTRONIC MEANS, the POS shall be the location where goods are situated at the time of supply of services.
In regard to information technology, it is not uncommon to provide services in relation to tangible goods located distantly from a remote location .Thus the actual performance of Services could be quite different from the actual location of tangible goods.
This proviso requires that the POS shall be the actual location of the goods & not the place of performance.

So when supplier doctor provide training program on webnair is on Electronic media (Computer) ,the Performance of Service is location of ELECTRONIC media (computer) situated at Receptient Place outside India.

Hence it qualify as Export of Services , subject to conditions that all the condition fulfilled as provided in export Services Defination under Section 2(6) of IGST Act.

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 13 August 2020

So we cannot skip the said proviso.

JPFF (Student) (38 Points)
Replied 14 August 2020

Hi Mr Pankaj, thanks for the reply. So for the example provided above is the computer (i.e. means through which the seminar is accessed online *) considered as goods ? As per my understanding the services must be provided in relation to goods required to be made physically available for section 13(3)(a) to apply . So the provision of service must directly affect the goods and since the service is not affecting goods as such, I had interpreted the clause as not being applicable.

*medium is the internet