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Looking Beyond Geography to Legal Structure In an increasingly globalised corporate environment, Indian enterprises now routinely extend their activities beyond national boundaries. Overseas conferences, international assignments, global training programmes, and cross-border client meetings have be
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FAQ :
Yes, GST can still apply. The taxability is determined by the location of the supplier and recipient (both in India in this case) and the place of supply, not just where the service is physically performed. Overseas performance alone does not exempt a transaction from GST.
For outward supplies where both the Indian supplier and Indian corporate client are located in India, Section 12 of the IGST Act applies. For passenger transportation services to a registered person, the place of supply is the location of the recipient, which is India.
No, these services generally cannot be treated as exports of services under GST. This is because the service recipient is located in India, and payment is received in Indian currency, failing to meet the strict conditions for export classification.
No, there is generally no GST liability on inward car rental services from foreign vendors in this scenario. While the supplier is outside India and the recipient is in India, the place of supply for passenger transport services is where the journey commences outside India, thus not meeting the definition of 'import of services'.
The key factor is the contractual structure and legal relationships between the parties, rather than the physical location where the service is performed. Clear documentation of these structures is crucial for avoiding disputes.
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