Vodafone Idea Limited Vs Union of India (Bombay High Court)
The Bombay High Court considered cross writ petitions concerning refund of Integrated GST (IGST) paid on export of telecom services. Vodafone Idea Limited sought implementation of an order-in-appeal dated 18.08.2021 granting refund of ₹1,02,74,14,843 for the period April to September 2019. The Revenue challenged the appellate order, contending that the services—International Inbound Roaming (IIR) and International Long Distance (ILD)—were consumed in Maharashtra and did not qualify as “export of services” under Section 2(6) of the IGST Act, particularly disputing the condition that the place of supply must be outside India.
Vodafone argued that it rendered services to Foreign Telecom Operators (FTOs), who paid consideration in convertible foreign exchange, and that subscribers of FTOs were not recipients. The Court examined Sections 2(6) and 13 of the IGST Act and Section 2(93) of the CGST Act, holding that the recipient of service was the FTO, not the individual roaming subscriber. Since Section 13(3)(b) applies only to services supplied to an individual requiring physical presence, it was inapplicable. The Court held that Section 13(2) governed the case, making the place of supply the location of the recipient—outside India. Consequently, the services qualified as export of services and zero-rated supply under Section 16 of the IGST Act.
