GST concession but only halfway

The latest exemption for services supplied by an establishment of a person in India to any other of that person outside India is an improvement over the earlier position when tax was payable

Last week, the Union finance ministry issued several notifications, giving effect to decisions of the Goods and Services Tax (GST) Council at the latter’s 28th meeting. One of these, [15/2008-Integrated Tax (Rate)] dated July 26, deals with exemption to services supplied by an establishment of a person in India to any establishment of that person outside India.

The import of this exemption deserves some deliberation. Under the GST laws, where a person has an establishment in India and any others outside, these are to be treated as establishments of distinct persons. Supply of services between these when in the course