GST/IGST Zero-Rating and LUT Representation

The parties acknowledge that the supply of the Services by Vendor to Client may qualify as an export of services that is zero-rated for Indian goods-and-services-tax purposes (IGST Act 2017 s.16; conditions for 'export of services' under IGST Act 2017 s.2(6)), provided the applicable statutory conditions are satisfied, including that the recipient is located outside India, payment is received in convertible foreign exchange (or as otherwise permitted) and evidenced by a Foreign Inward Remittance Certificate (FIRC) or equivalent, and that Vendor and Client are not merely establishments of a single person. Vendor represents that, where it is registered for GST and intends to supply without payment of integrated tax, it has furnished or will furnish a valid Letter of Undertaking (LUT) for the relevant period (rule prescribing LUT in lieu of bond), and will comply with applicable SOFTEX filing requirements and use the correct Service Accounting Code for the Services (applicable SAC). If the zero-rating conditions are not met or the LUT is unavailable or lapses, integrated tax may apply at the standard rate (18%), and the parties shall address any such tax in accordance with the payment terms. Where {{VENDOR_GST_REGISTERED}} is unknown at the time of contracting, Vendor shall promptly notify Client of its registration status and of any change that affects the treatment of the Services.