GST by a foreign company not having office in India

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When an Indian company leases an aircraft from a foreign company without an office in India, such as one based in the USA, the Indian company is typically liable to pay GST under the reverse charge mechanism. This is because the service is considered an import of service, and the recipient in India is responsible for the tax liability as per GST regulations.

vilochan singh shah

vilochan singh shah (Querist)
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14 August 2020 We have taken one aircraft on lease from a USA company. Can the USA company charge GST on Lease Rent or we are liable under Reverse Charge.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 August 2020 USA company will not charge GST on Lease Rent. You are liable under Reverse Charge under import of service.

Udaya Chandran

Udaya Chandran (Expert)
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14 August 2020 As per my opinion, It is import of service. RCM is applicable as per Mr.Seetharaman.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 August 2020 If the supplier of service is located in a non-taxable territory, the recipient of services located in the taxable territory is liable to pay GST under reverse charge. Notification Nos. 13/2017-CT (Rates) and 10/2017-IT (Rates) dated 28-6-2017

Udaya Chandran

Udaya Chandran (Expert)
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14 August 2020 @CA R Seetharaman

Thanks sir, agree with you.

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