Import of services and reimbursed employee costs under GST

CA Roopa Nayak | Last updated: 04 July 2022

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This article examines the GST implications of importing services and reimbursing employee costs, particularly concerning employees seconded from overseas group companies. While previously understood that employee-employer services were outside the tax net, a recent Supreme Court ruling in the Northern Operating Systems case has raised questions. The ruling suggests that such arrangements might be considered 'manpower supply services' attracting GST under the reverse charge mechanism (RCM).

Background Under GST law, GST is applicable on import of services in hands of recipient in India under reverse charge mechanism[RCM]. Import of services is wherein the supplier of service is outside India, recipient of service is in India and the place of supply of service is determined to be in

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About the Author

CA Roopa Nayak

Specialized in Indirect Taxes

Partner of HNA Co LLP[Formerly Hiregange Associates LLP], in practice for over 15 years GST end to end compliance services with focus on resolving issues under GST law and procedural aspects. Providing Advisory services to clients from varied sectors in GST with focus on optimisation of taxes and cost savings. Su ... Read more

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