In short
| Item | What applies | Since | Good to know |
|---|---|---|---|
| Supply to an SEZ unit or developer | IGST, even within your own State | 1 Jul 2017 | IGST Act s.7(5)(b). |
| GST-free under an LUT | Only for the SEZ's authorised operations | 1 Oct 2023 | Before, the Act zero-rated any SEZ supply; refunds still needed the Zone officer's endorsement. |
| Letter of Undertaking (LUT) | Any registered person, once a year, before the first such supply | 4 Oct 2017 | Not for those prosecuted for tax evaded above ₹250 lakh. |
| Paying IGST and claiming it back | Open to services and to SEZ suppliers | 1 Oct 2023 | Now only for notified classes; before, open to all zero-rated supplies. |
| E-invoice types for SEZ supplies | SEZWOP under LUT, SEZWP with IGST; SEZWPA and SEZWPNA added | 1 Jan 2027 | Schema 1.2 keeps SEZWP; it does not say when to use which. |
| Cab trip, hotel or event in India for a foreigner | Not an export: charge GST | 1 Jul 2017 | Its place of supply is in India. |
| Commission from a foreign principal | Can be an export if all five conditions hold | 30 Mar 2026 | Before, its place of supply was your own location. |
| Services bought from abroad | You pay IGST under reverse charge, in cash | 1 Jul 2017 | Claim it back, if eligible, in GSTR-3B Table 4(A)(2). |
| IRN on imported services | Needed if you are on e-invoicing (RCMIMP) | 1 Jan 2027 | Notification 04/2026-CT. |
Current, upcoming and expired rules
Current is what applies today. Upcoming is notified and starts later. Expired shows what applied before, from which date to which date, for when an old invoice or a notice asks.
Rules as on 31 Oct 2026 (India time). A rule moves between the tabs on its own when its start or end date passes.
| Rule | Rate | Dates | Law and source |
|---|---|---|---|
| From 30 March 2026 intermediary services follow the default rule (the recipient's location)Section 13(8)(b) was omitted by s.157 of the Finance Act 2026 with effect from 30 Mar 2026, so the place of supply of intermediary services is now the recipient's location (s.13(2)). An Indian travel agent or DMC arranging services for a foreign principal can now export, if every s.2(6) condition is met (for example payment in foreign exchange or RBI-permitted rupees, and not a branch of the same person); an Indian business paying commission to a foreign intermediary now has an import of services and pays IGST under reverse charge.Our reading: The default rule applies only where no specific rule in s.13(3) to (13) covers the service, so whether an agent's service of booking hotels or events falls under the hotel or event rule instead is not settled. That the omission does not reach periods before 30 Mar 2026 is also our reading. No CBIC circular has addressed either point since the change. | — | Since 30 Mar 2026 | IGST Act s.13(8)(b) omitted by s.157 of the Finance Act 2026 (No. 4 of 2026) w.e.f. 30.03.2026; s.13(2); s.2(6); s.2(11) Checked against the textIGST Act s.13 (CBIC), footnote on the omissionGST Council newsletter, Issue 84 (March 2026)Finance Bill 2026, clause 141 and notes on clauses |
| LUT condition: the deadline now follows the FEMA period (from July 2024)Tax with interest becomes payable if payment for exported services is not received in convertible foreign exchange, or in Indian rupees where RBI permits, within fifteen days after one year or after the period allowed under FEMA including any RBI extension, whichever is later, from the invoice date (or a further period allowed by the Commissioner). | — | Since 10 Jul 2024 | CGST Rules rule 96A(1)(b), substituted by Notification 12/2024-CT dated 10.07.2024 Checked against the textCBIC tax portal - CGST Rules rule 96A (current text, amendment notes) |
| Rupee payments through Special Rupee Vostro Accounts count for export of servicesCBIC clarified that when Indian exporters of services are paid in rupees from the Special Rupee Vostro Account of the partner country's correspondent bank (RBI A.P. (DIR Series) Circular No. 10 dated 11 Jul 2022), condition (iv) of s.2(6) is met, subject to the Foreign Trade Policy 2023 and RBI conditions. | — | Since 27 Oct 2023 | CBIC Circular 202/14/2023-GST dated 27.10.2023 Checked against the textGST Council Secretariat - 'Recent amendment in GST in October 2023' (reproduces Notif. 05/2023-IT and Circular 202/14/2023-GST)52nd GST Council press release, 07.10.2023 (CBIC) |
| From 1 Oct 2023 only supplies for authorised operations are zero-ratedSection 16(1)(b) now reads 'supply of goods or services or both for authorised operations to a Special Economic Zone developer or a Special Economic Zone unit'. A supply to an SEZ that is not for its authorised operations is not zero-rated: it stays an inter-State supply under s.7(5)(b), so IGST is charged at the normal rate and the LUT and refund routes do not apply to it.Our reading: That a supply to an SEZ for non-authorised operations is an ordinary IGST supply is our reading of section 7(5)(b) with section 16(1)(b); no CBIC circular deals with it. | — | Since 1 Oct 2023 | IGST Act s.16(1)(b) as amended by s.123(a) of the Finance Act 2021 (dated 28.03.2021), brought into force from 01.10.2023 by Notification 27/2023-CT dated 31.07.2023 Checked against the textCBIC tax portal - IGST Act s.16 (current text, amendment notes)CBIC tax portal - IGST Act s.7 |
| From 1 Oct 2023: LUT route for everyone, IGST-paid route only for notified classesSection 16(3) now gives every registered person making zero-rated supplies the bond/LUT route (no IGST; refund of unutilised input tax credit). Paying IGST and claiming it back is allowed only for classes of persons, goods or services that the Government notifies under the new s.16(4). | — | Since 1 Oct 2023 | IGST Act s.16(3) substituted and s.16(4) inserted by s.123(b) of the Finance Act 2021, in force from 01.10.2023 (Notification 27/2023-CT dated 31.07.2023) Checked against the textCBIC tax portal - IGST Act s.16 (current text, amendment notes) |
| Who may still pay IGST and claim a refund (from 1 Oct 2023)Notification 01/2023-Integrated Tax, as substituted by 05/2023-IT with effect from 1 Oct 2023, lets all goods or services be exported on payment of IGST with refund, except a listed set of goods such as pan masala and tobacco products. It also lets all suppliers to an SEZ developer or unit undertaking authorised operations supply them on payment of IGST and claim the refund, so for travel services both routes remain open. | — | Since 1 Oct 2023 | Notification 01/2023-IT dated 31.07.2023, substituted by Notification 05/2023-IT dated 26.10.2023 (deemed from 01.10.2023), issued under IGST Act s.16(4) Checked against the textGST Council Secretariat - 'Recent amendment in GST in October 2023' (reproduces Notif. 05/2023-IT and Circular 202/14/2023-GST)52nd GST Council press release, 07.10.2023 (CBIC) |
| SEZ refund declaration: no tax collected from the SEZA refund claim for a supply to an SEZ needs a declaration that tax has not been collected from the SEZ unit or developer. | — | Since 1 Feb 2019 | CGST Rules rule 89(2)(f), substituted by Notification 03/2019-CT dated 29.01.2019 w.e.f. 01.02.2019 Checked against the textCBIC tax portal - CGST Rules rule 89 (current text, amendment notes) |
| Export of services: rupee payments count where RBI permitsCondition (iv) now reads: payment received 'in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India'. The other four conditions are unchanged; under condition (v) and Explanation 1 to s.8, an establishment in India and an establishment outside India of the same person are distinct persons, so services by an Indian office to its own foreign branch are not exports. | — | Since 1 Feb 2019 | IGST Act s.2(6), words inserted by s.2 of the IGST (Amendment) Act 2018 (No. 32 of 2018) w.e.f. 01.02.2019; s.8 Explanation 1 Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC tax portal - IGST Act s.8GST Council - list of CGST circulars (shows the subject of Circular 161/17/2021-GST)57th GST Council press release, 08.10.2026 (PIB copy on GST Council site) |
| Any registered person may export or supply an SEZ under a yearly LUTAll registered persons may furnish a Letter of Undertaking instead of a bond, except those prosecuted under the CGST or IGST Act or the earlier laws in a case where the tax evaded exceeds ₹250 lakh. The LUT is given on letterhead, in duplicate, for a financial year, in the annexure to FORM GST RFD-11, signed by the proprietor, working partner, managing director, company secretary or an authorised person; the same applies to zero-rated supplies to SEZ units and developers. | — | Since 4 Oct 2017 | Notification 37/2017-CT dated 04.10.2017 (under rule 96A(5); supersedes 16/2017-CT), paras (i) to (iii) and 2; Circular 8/8/2017-GST Checked against the textGST Council - Notification 37/2017-CT dated 04.10.2017 (LUT conditions)CBIC Circular 8/8/2017-GST dated 04.10.2017 (bond / LUT) |
| Export and SEZ invoice endorsementAn invoice for an export or for a supply to an SEZ unit or developer for authorised operations must carry 'SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX' or the same words ending 'UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX'. It must show the recipient's name and address, the delivery address and the country of destination.Our reading: The proviso is written for exports, but the endorsement it prescribes names supplies to SEZ units, so we read it as applying to them too. | — | Since 27 Jul 2017 | Proviso to rule 46 substituted by Notif. 17/2017-CT dated 27.07.2017 (in force on publication) Checked against the textGST Council - Notif. 17/2017-CT dated 27.07.2017CBIC tax information portal - CGST Rules rule 46 (with amendment notes) |
| A supply to an SEZ unit or developer is inter-State, even inside the same StateAny supply of goods or services to or by an SEZ developer or SEZ unit is treated as a supply in the course of inter-State trade, so IGST applies even when the supplier and the SEZ are in the same State. The Act also says that intra-State supply of services does not include services supplied to or by an SEZ developer or unit. | — | Since 1 Jul 2017 | IGST Act s.7(5)(b); s.8(2) proviso Checked against the textCBIC tax portal - IGST Act s.7CBIC tax portal - IGST Act s.8 |
| Hotel rooms, conferences and banquets for an SEZ: IGST, and zero-rated only for authorised operationsCBIC clarified that short-term accommodation, conferencing and banqueting supplied to an SEZ developer or unit are inter-State supplies, because s.7(5)(b) is the specific rule and prevails over the hotel place-of-supply rule. Event management, hotel and accommodation services get zero-rating only if the SEZ received them for its authorised operations, as endorsed by the Zone's specified officer, subject to s.17(5) of the CGST Act. | — | Since 1 Jul 2017 | CBIC Circular 48/22/2018-GST dated 14.06.2018, issues 1 and 2 Checked against the textCBIC Circular 48/22/2018-GST dated 14.06.2018 |
| Cab hire for an SEZ unit's staff: zero-rated only if endorsed as authorised operationsNo CBIC circular or notification says whether cab hire or employee transport for an SEZ unit is 'for authorised operations'. What decides it is the endorsement by the Zone's specified officer, which follows the unit's approved authorised operations under the SEZ Act.Our reading: Treating the endorsement as the deciding test is our reading. The one advance ruling on car hire to an SEZ (Tamil Nadu, New Pandian Travels, 2021) did not look at authorised operations; it held only that credit on the cars was blocked. | — | Since 1 Jul 2017 | IGST Act s.16(1)(b); CGST Rules rule 89(1) proviso; Circular 48/22/2018-GST; TN AAR Order 43/AAR/2021 dated 30.11.2021 Checked against the textTamil Nadu AAR Order 43/AAR/2021 dated 30.11.2021, New Pandian Travels (GST Council copy)CBIC Circular 48/22/2018-GST dated 14.06.2018CBIC tax portal - CGST Rules rule 89 (current text, amendment notes) |
| An LUT or bond must be in place before supplying an SEZ without IGSTThe bond/LUT requirement of rule 96A(1) applies, with the necessary changes, to zero-rated supplies to an SEZ developer or unit without payment of IGST, so the LUT must be filed before the supply. CBIC clarified that LUT supplies of services to an SEZ are allowed whether the SEZ pays in rupees or in foreign exchange, as long as RBI guidelines are followed. | — | Since 1 Jul 2017 | CGST Rules rule 96A(6); Notification 37/2017-CT para 2; Circular 8/8/2017-GST paras 2(e) and 2(k) Checked against the textCBIC tax portal - CGST Rules rule 96A (current text, amendment notes)GST Council - Notification 37/2017-CT dated 04.10.2017 (LUT conditions)CBIC Circular 8/8/2017-GST dated 04.10.2017 (bond / LUT) |
| SEZ refunds need the Zone officer's endorsement and proof of the SEZ's paymentFor supplies to an SEZ, a supplier of services files the refund application (FORM GST RFD-01) with evidence, endorsed by the specified officer of the Zone, that the services were received for authorised operations. The application must include a statement of invoice numbers and dates, that endorsement, and details and proof of the SEZ recipient's payment to the supplier for authorised operations. | — | Since 1 Jul 2017 | CGST Rules rule 89(1) proviso, clause (b); rule 89(2)(e) Checked against the textCBIC tax portal - CGST Rules rule 89 (current text, amendment notes)GST Council - Notification 10/2017-CT dated 28.06.2017 (rules incl. rule 89; FORMS GSTR-1 and GSTR-3B) |
| Report SEZ supplies in GSTR-1 Table 6B and GSTR-3B Table 3.1(b)Zero-rated supplies go in GSTR-1 Table 6 'Zero rated supplies and Deemed Exports': 6A Exports, 6B 'Supplies made to SEZ unit or SEZ Developer', 6C Deemed exports. In GSTR-3B they go in Table 3.1(b) 'Outward taxable supplies (zero rated)', which the portal fills from GSTR-1 Tables 6A, 6B and 9. | — | Since 1 Jul 2017 | FORM GSTR-1 Table 6 and FORM GSTR-3B Table 3.1(b), as notified by Notification 10/2017-CT; GSTN advisory on auto-population of GSTR-3B Checked against the textGST Council - Notification 10/2017-CT dated 28.06.2017 (rules incl. rule 89; FORMS GSTR-1 and GSTR-3B)GSTN advisory - auto-population of GSTR-3B from GSTR-1 and GSTR-2B |
| Refund for export of services needs invoices with BRC or FIRCA refund claim on account of export of services must include a statement of invoice numbers and dates together with the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates. | — | Since 1 Jul 2017 | CGST Rules rule 89(2)(c) Checked against the textCBIC tax portal - CGST Rules rule 89 (current text, amendment notes)GST Council - Notification 10/2017-CT dated 28.06.2017 (rules incl. rule 89; FORMS GSTR-1 and GSTR-3B) |
| Cross-border place of supply: the default is the recipient's locationSection 13 decides the place of supply when the supplier or the recipient is located outside India. Unless a specific rule in s.13(3) to (13) applies, the place of supply is the recipient's location; if that is not available in the ordinary course of business, it is the supplier's location. | — | Since 1 Jul 2017 | IGST Act s.13(1), (2) Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| Services needing the customer's presence: place where performedFor services supplied to an individual (or a person acting for the recipient) that require that person's physical presence with the supplier, the place of supply is where the services are actually performed. If such a service is supplied at more than one location including one in India, the place of supply is the location in India (s.13(6)). | — | Since 1 Jul 2017 | IGST Act s.13(3)(b), s.13(6) Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| Hotel stays: the place of supply is where the hotel isServices directly in relation to immovable property, including accommodation in a hotel, inn, guest house, club or campsite, are supplied where the property is; this rule (s.13(4)) applies when the supplier or the customer is abroad. So a room in an Indian hotel sold to a foreign guest or a foreign tour operator has its place of supply in India and is not an export, and a hotel abroad that you buy from directly is supplied abroad. When an Indian business sells a stay abroad to a customer in India, section 12(3) puts the place of supply at the customer's location instead. | — | Since 1 Jul 2017 | IGST Act s.13(4) Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| Events and conferences: the place where heldAdmission to, or organisation of, a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar event, and ancillary services, are supplied where the event is actually held. An event in India organised for a foreign client is therefore not an export. | — | Since 1 Jul 2017 | IGST Act s.13(5) Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| Vehicle hire up to one month: the supplier's locationHiring of means of transport (including yachts, but not aircraft or vessels) for up to one month is supplied at the supplier's location. A cab rented out by an Indian operator to a foreign customer for a trip or a few weeks therefore has its place of supply in India. | — | Since 1 Jul 2017 | IGST Act s.13(8)(c) Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| Passenger transport: the place where the passenger boardsThe place of supply of passenger transportation services is where the passenger embarks on the conveyance for a continuous journey. A cab trip starting in India for a foreign tourist therefore has its place of supply in India. | — | Since 1 Jul 2017 | IGST Act s.13(10) Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| Cab trips, hotel stays and events in India sold to foreigners are not exportsA cab trip or cab hire (s.13(10) or s.13(8)(c)), a hotel stay (s.13(4)) or an event (s.13(5)) in India sold to a foreign tourist or a foreign company has its place of supply in India, so condition (iii) of s.2(6) fails even if payment comes in foreign exchange. Charge GST as on a domestic supply; an LUT does not help. | — | Since 1 Jul 2017 | IGST Act s.2(6)(iii) read with s.13(4), (5), (8)(c) and (10) Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| A tour inside India sold to a foreign tourist: place of supply in India (our reading)The Act has no rule written for tour operators. A tour needs the tourist's physical presence, which points to s.13(3)(b) (where performed) and, for a tour partly in India, to s.13(6) (the location in India), so the tour is not an export; the 2022 exemption for the foreign part of a tour (S.No. 54A / 52A) is drafted on that footing and leaves the India portion taxable.Our reading: The Act has no place-of-supply rule written for tour operators, so this is our reading of section 13(3)(b) and 13(6); no CBIC circular states it. | — | Since 1 Jul 2017 | IGST Act s.13(2), (3)(b), (6); Notification 9/2017-IT(Rate) S.No. 54A Checked against the textCBIC tax portal - IGST Act s.13 (current text, amendment notes)CBIC - Notification 04/2022-IT(Rate) dated 13.07.2022 |
| Who is an intermediary: CBIC's testsAn intermediary is a broker, agent or other person who arranges or facilitates a supply between two or more persons, but not one who supplies on his own account (s.2(13)). CBIC Circular 159/15/2021-GST says this needs at least three parties and two distinct supplies (the main supply and the arranging service); a person who supplies the main service fully or partly on a principal-to-principal basis, or a sub-contractor, is not an intermediary, and each case turns on its facts and contract.Our reading: How this applies to travel is our reading: an agent or DMC that only books hotels or transport for a foreign tour operator on commission is an intermediary; one that buys the services and sells its own package at its own price is not. | — | Since 1 Jul 2017 | IGST Act s.2(13); CBIC Circular 159/15/2021-GST dated 20.09.2021 Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC Circular 159/15/2021-GST dated 20.09.2021 (intermediary) |
| Import of services: the Indian recipient pays IGST under reverse chargeImport of services means the supplier is outside India, the recipient is in India and the place of supply is in India (s.2(11)); it is an inter-State supply (s.7(4)). Under s.5(3) and Notification 10/2017-IT(Rate) S.No. 1, IGST on any service supplied by a person in a non-taxable territory is paid by the recipient in the taxable territory under reverse charge, unless the recipient is a non-taxable online recipient. | — | Since 1 Jul 2017 | IGST Act s.2(11), s.5(3), s.7(4); Notification 10/2017-IT(Rate) S.No. 1 Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC tax portal - IGST Act s.7CBIC - consolidated IGST Act as on 27.03.2020CBIC - Notification 10/2017-IT(Rate) dated 28.06.2017 (as issued) |
| Reverse-charge IGST on imported services is paid in cashThe electronic credit ledger can be used only to pay 'output tax' (CGST s.49(4)), and output tax excludes tax payable on reverse charge (IGST s.2(18); CGST s.2(82)). So IGST on imported services is paid in cash, and the credit can then be claimed if eligible. | — | Since 1 Jul 2017 | CGST Act s.49(4), s.2(82); IGST Act s.2(18), s.20 Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC - consolidated CGST Act as on 28.09.2022CBIC - consolidated IGST Act as on 27.03.2020 |
| Report import of services in GSTR-3B Tables 3.1(d) and 4(A)(2)Show the IGST payable on imported services in GSTR-3B Table 3.1(d) 'Inward supplies (liable to reverse charge)', and claim the credit, if eligible, in Table 4(A)(2) 'Import of services'. The portal does not auto-fill reverse-charge tax on imported services, so add it yourself. | — | Since 1 Jul 2017 | FORM GSTR-3B Tables 3.1(d) and 4(A)(2) (Notification 10/2017-CT); CBIC Circular 170/02/2022-GST; GSTN advisory on auto-population Checked against the textGST Council - Notification 10/2017-CT dated 28.06.2017 (rules incl. rule 89; FORMS GSTR-1 and GSTR-3B)CBIC Circular 170/02/2022-GST dated 06.07.2022 (GSTR-3B Table 4)GSTN advisory - auto-population of GSTR-3B from GSTR-1 and GSTR-2B |
| Imports exempt for non-business individuals, government and charitiesServices received from a provider abroad are exempt when received by the Government, a local authority, a governmental authority or an individual for any purpose other than business, by a registered charity, or by a person located outside India. A travel business importing services for its business cannot use this. | Nil | Since 1 Jul 2017 | Notification 9/2017-IT(Rate) S.No. 10 Checked against the textCBIC - Notification 9/2017-IT(Rate) dated 28.06.2017 (as issued) |
| Time of supply for imports from a foreign associated enterpriseWhere the supplier is an associated enterprise located outside India, the time of supply is the earlier of the date of entry in your books and the date of payment. Other imports follow the general reverse-charge time of supply, which changed on 1 Nov 2024. | — | Since 1 Jul 2017 | CGST Act s.13(3) and its second proviso, applied to IGST by IGST Act s.20 Checked against the textCBIC - consolidated CGST Act as on 28.09.2022CBIC - consolidated IGST Act as on 27.03.2020 |
| A hotel abroad booked by an Indian tour operator is not an importAccommodation in a hotel outside India is supplied where the hotel is (s.13(4)), so the place of supply is outside India and the purchase is not an 'import of services' under s.2(11)(iii). No IGST is payable on it under reverse charge. | — | Since 1 Jul 2017 | IGST Act s.2(11), s.13(4) Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC tax portal - IGST Act s.13 (current text, amendment notes) |
| A foreign software or booking-engine subscription: reverse charge for registered usersCloud services and software supplied over the internet are listed examples of 'online information and database access or retrieval services' (s.2(17)), whose place of supply is the recipient's location (s.13(12)). A registered Indian operator buying such a subscription from abroad has an import of services and pays IGST under reverse charge (10/2017-IT(Rate) S.No. 1). | — | Since 1 Jul 2017 | IGST Act s.2(16), s.2(17), s.13(12); Notification 10/2017-IT(Rate) S.No. 1 Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC tax portal - IGST Act s.13 (current text, amendment notes)CBIC - Notification 10/2017-IT(Rate) dated 28.06.2017 (as issued) |
| A foreign DMC's package or commission for an outbound tour: probably an importA foreign DMC's own ground package (transfers, guides, sightseeing) sold to an Indian tour operator has no specific place-of-supply rule, so the default s.13(2) points to the Indian recipient's location, which would make it an import with IGST under reverse charge; hotel or event charges billed separately are supplied abroad. From 30 Mar 2026 a foreign DMC's commission for merely arranging services also follows the default rule and is an import.Our reading: No CBIC circular or ruling covers a foreign DMC's supplies to Indian tour operators. Arguing that the place of supply is abroad because the tourists are there is possible but untested. | — | Since 1 Jul 2017 | IGST Act s.2(11), s.13(2), (3)(b), (4), (5), (10); s.13(8)(b) omitted w.e.f. 30.03.2026 Checked against the textCBIC tax portal - IGST Act s.2 (current text, amendment notes)CBIC tax portal - IGST Act s.13 (current text, amendment notes) |
Checked against the government text Official copy not yet online; matched across published copies The law is unclear; this is our reading
On a timeline
Each line is one rule; each bar is one period. Grey has ended, green applies today, amber starts later.
What courts and rulings have said
Judgments and advance rulings that explain a rule, including ones that pull in different directions. Weigh them by who gave them: a Supreme Court judgment binds every court in India; a High Court’s is followed by courts and tax officers in its State and is persuasive elsewhere; an advance ruling (AAR or AAAR) binds only the business that asked for it and its tax officer (section 103 of the CGST Act).
| Ruling | Question and answer | Weight |
|---|---|---|
| High CourtDharmendra M. Jani v. Union of India and others, with A.T.E. Enterprises Private Limited v. Union of India and othersBombay High Court, 18 Apr 2023Writ Petition No. 2031 of 2018 with Writ Petition (L) No. 639 of 2020 (2023:BHC-OS:3045-DB) | On the reference after the split: is IGST Act s.13(8)(b) (with s.8(2)) valid, and can it be used to charge CGST and state GST on an intermediary's services to foreign clients?Section 13(8)(b) and s.8(2) are legal, valid and constitutional, but only within the IGST Act. They cannot be used to levy tax on such services under the CGST and Maharashtra GST Acts.“confined in their operation to the provisions of IGST Act only and the same cannot be made applicable for levy of tax on services under the CGST and MGST Acts”IGST Act s.13(8)(b) (omitted by Finance Act 2026 w.e.f. 30-03-2026), s.8(2), s.2(13)Referral judgment of G.S. Kulkarni, J (copy hosted by LiveLaw)LiveLaw report (secondary)Taxmann on the final Division Bench order (secondary)Grant Thornton on Finance Act 2026 omitting s.13(8)(b) (secondary) | Rulings differAuthorities within the Bombay High Court's jurisdiction (Maharashtra, Goa, Dadra and Nagar Haveli and Daman and Diu); persuasive elsewhereA Division Bench then passed the final order on this answer. Conflicts with the Gujarat High Court in Material Recycling Association (2020). The law has since changed: the Finance Act 2026 (s.157) omitted s.13(8)(b) with effect from 30 Mar 2026, as CBIC's IGST s.13 page records; earlier periods stay under the old text. |
| High CourtDharmendra M. Jani v. Union of India and othersBombay High Court, 16 Jun 2021Writ Petition No. 2031 of 2018 | Is IGST Act s.13(8)(b), which places an intermediary's services at the intermediary's own location so that services to foreign clients are not exports, constitutional?The judges split. Justice Ujjal Bhuyan (pronounced 09-06-2021) held s.13(8)(b) ultra vires the IGST Act and unconstitutional; Justice Abhay Ahuja (pronounced 16-06-2021) upheld it. On 16-06-2021 the bench sent the matter to the Chief Justice for a third judge.“section 13(8)(b) of the Integrated Goods and Services Tax Act, 2017 is ultra vires the said Act besides being unconstitutional”IGST Act s.13(8)(b), s.2(13) (intermediary), s.2(6) (export of services), s.8(2)Both 2021 opinions (copy on itatonline)LiveLaw report on the split verdict (secondary) | OvertakenNot a decision of the court (split opinions); no binding effectOvertaken by the third judge's answer of 18 Apr 2023. Justice Bhuyan's view conflicts with the Gujarat High Court in Material Recycling Association (2020). |
| High CourtMaterial Recycling Association of India v. Union of India and 2 othersGujarat High Court, 24 Jul 2020R/Special Civil Application No. 13238 of 2018 with No. 13243 of 2018 | Is IGST Act s.13(8)(b), read with the definition of intermediary in s.2(13), ultra vires, so that an Indian intermediary paid in foreign exchange by a client abroad is exporting services?No. The provision is valid; an intermediary in India serving a client abroad is not exporting services even if it invoices abroad and is paid in foreign exchange. The court said the rule places the supply at the intermediary's location so that CGST and SGST are charged.“considering the place of supply in case of intermediary to be the location of supply of service is in order to levy CGST and SGST”IGST Act s.13(8)(b), s.2(13), s.2(6); Notif. 20/2019-IT(Rate) entry 12AA (noted by the court)Judgment PDF (copy hosted by LiveLaw)LiveLaw report (secondary) | Rulings differAuthorities in Gujarat; persuasive elsewhereNo appeal found. Conflicts with the Bombay High Court in Dharmendra M. Jani (2023) on whether s.13(8)(b) can found a CGST and SGST levy. The law has since changed: s.13(8)(b) was omitted from 30 Mar 2026 (Finance Act 2026 s.157); earlier periods stay under the old text. |
| AARM/s New Pandian Travels Pvt Ltd, Chennai (applicant)Tamil Nadu AAR, 30 Nov 2021Order No. 43/AAR/2021 | Can a travel company claim ITC on cars of up to 13 seats that it rents with drivers to corporate clients, including SEZ units?No. Renting cars with drivers is neither a 'further supply of such motor vehicles' nor 'transportation of passengers', because the client's own transport team decides routes, pick-up points and who travels. The same applies to supplies to SEZ units under LUT.“the activity undertaken by the applicant is only renting/hiring of the Motor Vehicles with the operators and not undertaking transportation of passengers”CGST Act s.17(5)(a)(A) and (B); IGST Act s.16TN AAR ruling, official PDF (GST Council) | ClarifiesOnly the applicant and its jurisdictional tax officers (s.103).No appeal found. Same view as West Bengal AAR, Reesham Associates (2019). |
Billing an SEZ unit
- Always IGST. A supply to an SEZ unit or developer counts as inter-State, even if the SEZ is in your own State (IGST Act s.7(5)(b)). Hotel rooms, conferences and banquets for an SEZ are IGST too (CBIC Circular 48/22/2018).
- GST-free only for authorised operations. Since 1 October 2023 a supply to an SEZ is zero-rated only if it is for the unit’s authorised operations. Otherwise it is an ordinary IGST supply (our reading; no circular deals with it).
- Two ways to zero-rate. File a Letter of Undertaking (LUT) once a year in FORM GST RFD-11 before the first supply, and bill without IGST. Or charge IGST and claim it back as a refund, which since 1 October 2023 is open to services and to suppliers of SEZs. For that refund, you must not have collected the IGST from the SEZ.
- Paperwork. The invoice should carry the SEZ wording in rule 46 (our reading: the rule is written for exports, but its wording names SEZ supplies). Keep the Zone officer’s endorsement that the services were for authorised operations, and proof that the unit paid you; a refund claim needs both. Report the supply in GSTR-1 Table 6B and GSTR-3B Table 3.1(b).
| Under LUT, no IGST | With IGST, refund later | Not for authorised operations | |
|---|---|---|---|
| Zero-rated? | Yes | Yes | No: an ordinary IGST supply (our reading) |
| Before you bill | File the yearly LUT (RFD-11) | Nothing extra; don't collect the IGST from the SEZ if you want it back | Nothing extra |
| Invoice wording | “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX” | The same, ending “ON PAYMENT OF INTEGRATED TAX” | An ordinary tax invoice with IGST |
| E-invoice type | SEZWOP | SEZWP; from 1 Jan 2027 the schema also has SEZWPA, for authorised operations | SEZWP; from 1 Jan 2027 the schema also has SEZWPNA, for non-authorised operations |
| Keep on file | The Zone officer's endorsement and proof of payment | The same, for the refund claim | — |
Your company rents cars with drivers to an SEZ unit for ₹1,00,000 a month, on the 5% option. As a company supplier you charge the tax yourself, so reverse charge does not come in.
| For authorised operations, under LUT | Not for authorised operations | |
|---|---|---|
| Monthly hire | ₹1,00,000 | ₹1,00,000 |
| IGST | ₹0 | ₹5,000 |
| The SEZ unit pays | ₹1,00,000 | ₹1,05,000 |
No circular says whether cab hire for an SEZ unit’s staff is for its authorised operations; it turns on the Zone officer’s endorsement. Before billing without IGST, get the unit’s written confirmation and keep the endorsement. This is our reading. The one advance ruling on car hire to an SEZ (Tamil Nadu, New Pandian Travels, 2021) did not look at authorised operations; it held only that credit on the cars was blocked.
When a service to a foreign customer is an export
All five conditions in section 2(6) of the IGST Act must hold:
- You are located in India.
- The customer is located outside India.
- The place of supply is outside India.
- You are paid in convertible foreign exchange, or, since 1 February 2019, in Indian rupees where RBI permits. Rupees from a Special Rupee Vostro Account count (CBIC Circular 202/14/2023).
- You and the customer are not branches of the same person: an Indian office billing its own foreign branch is not exporting. In October 2026 the GST Council recommended dropping this condition; it applies until the Act is changed.
Condition 3 rules out most travel services. The place-of-supply rules put them in India:
| Sold to a foreign customer | Place of supply | Export? |
|---|---|---|
| Cab trip starting in India | Where the passenger boards (s.13(10)) | No: charge GST |
| Cab rented for up to a month | Your own location (s.13(8)(c)) | No: charge GST |
| Hotel room in India | Where the hotel is (s.13(4)) | No: charge GST |
| Event or conference in India | Where it is held (s.13(5)) | No: charge GST |
| Tour inside India | In India (our reading of s.13(3)(b) and 13(6)) | No: charge GST |
| Tour wholly outside India, for a foreign tourist | — | Exempt since 1 Jul 2017 |
| Tour partly abroad, for a foreign tourist | — | The foreign share is exempt, up to 50% of the price, since 18 Jul 2022 |
| Commission for arranging services for a foreign principal | Until 29 Mar 2026: your location. From 30 Mar 2026: the principal's location | From 30 Mar 2026, yes, if all five conditions hold |
An export can go under the same yearly LUT without IGST. A refund claim for exported services needs the invoices with the bank realisation or foreign inward remittance certificates. Tour exemptions are explained in Tours and events.
Agents and DMCs: the change on 30 March 2026
Until 29 March 2026, the place of supply of “intermediary services” was the agent’s own location (IGST Act s.13(8)(b)). An Indian agent or DMC earning a commission for arranging services for a foreign principal could not export, and a foreign agent’s commission billed to an Indian business was not an import.
The Finance Act 2026 (section 157) omitted that clause with effect from 30 March 2026, as CBIC’s IGST s.13 page records. Intermediary services now follow the default rule: the customer’s location. So the Indian agent’s commission from abroad can be an export, if all five conditions hold. In the other direction, commission paid to a foreign agent is now an import, with IGST under reverse charge.
Our reading on two open points. The default rule applies only where no specific rule covers the service, so an agent that books hotels or events may fall under the hotel or event rule instead. And the change is not stated to reach back, so periods up to 29 March 2026 stay under the old rule. No CBIC circular has addressed either point.
Who is an intermediary? A broker or agent who arranges a supply between others, not one who supplies on its own account (s.2(13); CBIC Circular 159/15/2021: at least three parties and two supplies). Our reading for travel: a DMC that only books hotels or transport for a foreign tour operator on commission is an intermediary. One that buys the services and sells its own package at its own price is not, and the specific rules for hotels, events and transport then apply.
Before the change, the Bombay High Court upheld s.13(8)(b) but held it could not found CGST and SGST (Dharmendra M. Jani, 2023), while the Gujarat High Court read it the other way (Material Recycling Association, 2020). Both are in the rulings table above.
Services bought from abroad
An import of services means the supplier is abroad, you are in India and the place of supply is in India (s.2(11)). You pay the IGST under reverse charge, not the foreign supplier (s.5(3); Notification 10/2017-IT(Rate)). You pay it in cash and show it in GSTR-3B Table 3.1(d), then claim it back, if eligible, in Table 4(A)(2). The portal does not fill either in.
- Software or a booking engine from a foreign company: an import, because online services are supplied where the customer is (s.13(12)).
- A hotel abroad booked for your clients: not an import. Its place of supply is where the hotel is, outside India. Events abroad and transport that starts abroad work the same way. Selling that stay on to a client in India is a separate supply: section 12(3) puts its place of supply at the client’s location.
- A foreign DMC’s own ground package for your outbound tour: probably an import under the default rule. No circular or ruling covers it (our reading).
- A foreign agent’s commission for arranging services: an import from 30 March 2026.
- From a foreign associated enterprise (a related company): the tax falls due on the earlier of the date you book the cost and the date you pay.
- Exempt: services bought for non-business use by individuals, government or registered charities. A travel business buying for its business cannot use this.
You pay a foreign company ₹1,00,000 for a year’s booking software, taxed at 18% in this example.
| On the 18% option | On the 5% option | |
|---|---|---|
| IGST you pay in cash (Table 3.1(d)) | ₹18,000 | ₹18,000 |
| Credit you take back (Table 4(A)(2)) | ₹18,000 | ₹0 |
| Net cost of the software | ₹1,00,000 | ₹1,18,000 |
On the 5% cab-hire option the only credit you take is on cab hire bought from other operators, so the IGST on software stays a cost. From 1 January 2027, a business on e-invoicing also gets an IRN for this import, supply type RCMIMP.
E-invoice supply types from 1 January 2027
Schema 1.2 of the e-invoice lists these supply types (Notification 05/2026-CT, item 67). SEZWPA, SEZWPNA, RCMDOM and RCMIMP go with the 2027 changes; SEZWP stays in the list.
| Code | Meaning |
|---|---|
| B2B | Business to business |
| B2C | Business to consumer |
| SEZWP | To an SEZ, with payment of IGST |
| SEZWOP | To an SEZ, without payment (under LUT or bond) |
| EXPWP | Export, with payment of IGST |
| EXPWOP | Export, without payment |
| DEXP | Deemed export |
| SEZWPA | To an SEZ, with payment, for authorised operations |
| SEZWPNA | To an SEZ, with payment, for non-authorised operations |
| RCMDOM | Your own invoice for a reverse-charge purchase from an unregistered person |
| RCMIMP | Import of services |
Common questions
Can I bill an SEZ unit without GST?
Yes, if the service is for the unit's authorised operations: file the yearly LUT first, put the SEZ wording on the invoice, report it in GSTR-1 Table 6B, and keep the Zone officer's endorsement and proof of payment. If it is not for authorised operations, charge IGST. No circular says whether cab hire counts, so get the unit's written confirmation (our reading).
A foreign tourist pays me in dollars for a cab trip. Is that an export?
No. The place of supply of passenger transport is where the passenger boards, which is in India, so it fails the export test whatever the currency. Charge GST as on any trip.
Do I pay GST on software I buy from a foreign company?
Yes. As a registered business you pay IGST under reverse charge, in cash, and can claim it back if your credit is not restricted. On the 5% cab-hire option it stays a cost.
Is a hotel abroad that I book for my clients an import?
No. A hotel's place of supply is where it is, so a hotel outside India is not an import of services and carries no reverse charge.
From 30 March 2026, can a DMC's commission from a foreign tour operator be an export?
Yes, if all five export conditions hold, because the intermediary rule that kept such commission in India was omitted from that date. A DMC that sells its own package at its own price is not an intermediary, and the rules for hotels, events and transport apply to it instead (our reading).
Words used on this page
- GST option (5% or 18%)
- For cab hire with driver and fuel you choose 5% with almost no input credit, or 18% with full input credit. Until 21 Sep 2025 the second option was 12%.
- ITC (input tax credit)
- GST you paid on business purchases that you subtract from the GST you collect.
- Same line of business
- Buying the same kind of service you sell, such as cab hire bought from another operator.
- RCM (reverse charge)
- The customer pays the GST to the government instead of the supplier.
- Body corporate
- A company or an LLP. Proprietors, HUFs and partnership firms are not body corporates.
- SAC / HSN
- The code printed on an invoice for a service (SAC) or for goods (HSN).
- Place of supply
- The state whose GST applies. It decides whether you charge IGST or CGST plus SGST.
- E-invoice / IRN
- Reporting an invoice to the government portal, which returns an Invoice Reference Number and a QR code.
- Pure agent
- Someone who pays an expense on the customer's behalf, with its authority, and recovers it at actual cost.
- TDS
- Tax your customer cuts from a payment to you and deposits against your PAN. You claim it in your income tax return.
- TCS
- Tax a seller collects from the buyer on top of the price, such as on overseas tour packages.