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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesAs of 7 October 2026, reports said the GST Council was expected to consider a proposal on services supplied through an Indian company’s overseas branch; they do not establish that the Council approved a change. Under the published rule, payment from abroad alone does not make a service an export: the statutory test also excludes supplies between establishments of the same person.
What is the current GST test for an export of services?
Section 2(6) of the Integrated Goods and Services Tax (IGST) Act, 2017 sets out five conditions. The GST Council’s published materials reproduce the test as follows:
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- The supplier of the service is located in India.
- The recipient of the service is located outside India.
- The place of supply is outside India.
- Payment for the service is received in convertible foreign exchange, or in Indian rupees where the Reserve Bank of India permits it.
- The supplier and recipient are not merely establishments of a distinct person under Explanation 1 in section 8.
All five conditions matter. The Council’s 45th meeting analysis explains that, for IGST purposes, an entity’s Indian and overseas establishments are treated as distinct persons. As a result, a service supplied by one establishment to another establishment of the same entity does not meet the fifth condition under the published definition. The Council’s 52nd meeting materials reproduce the five-part statutory test, including the qualification on payment in rupees.
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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →The Council’s analysis says that a service supplied by an Indian establishment of a foreign company to another establishment of that company abroad “will not be covered under definition of export of services.” That is the official explanation of the rule in that meeting document, not a determination of what the Council might decide in 2026.
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What change was reportedly under consideration?
Reports published on 5 and 6 October 2026 said the Council was expected to consider changing the export definition in connection with foreign-exchange-generating commercial activity and services supplied through an Indian company’s overseas branch. The 5 October report by The Economic Times/PTI and the 6 October ETCFO report describe expected consideration at the Council’s 7 October meeting.
Those reports do not show that the Council approved the proposal. They do not provide amended statutory wording, final eligibility conditions, an effective date, or transition arrangements. The practical issue is whether any eventual change would give greater weight to the commercial activity and foreign-exchange outcome, and how it would treat a company supplying services through its own overseas branch. The published proposal descriptions do not settle either question.
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How the published rule and reported proposal differ
| Question | Published statutory baseline | Reported proposal |
|---|---|---|
| Same-entity overseas branch | The distinct-person condition excludes supplies between establishments of the same person from export status under that condition, as explained in the GST Council’s 45th meeting analysis. | Reports say the Council was expected to consider the issue; final treatment is not stated in the 5 and 6 October 2026 reports. |
| Foreign-exchange receipt or commercial activity | Receipt in convertible foreign exchange, or in Indian rupees where RBI permits, is one of five requirements; it does not override the separate distinct-person condition. | Reports describe a proposal linked to foreign-exchange-generating commercial activity; detailed eligibility criteria are not stated in those reports. |
| Legal status and effective date | The published section 2(6) test is reproduced in the GST Council’s 52nd meeting materials. | Approval, final legal text and effective date are not stated in the reports. |
Has the GST Council changed the rule?
The available reports establish expected consideration, not an approved or implemented change. They do not establish the outcome of the 7 October 2026 meeting or whether an amendment, notification, or circular followed. A company assessing a particular branch arrangement should verify the current statutory text and any later official legal instrument before treating the service as an export; the place-of-supply and other case-specific facts also matter.
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