IGst on import of service


This query is : Resolved 

Quick Summary
This discussion clarifies whether an Indian company, A Ltd, needs to pay IGST on technical inspection services performed by a foreign entity, B, outside India. Based on Section 2(11) of the IGST Act, 2017, the import of services requires the place of supply to be in India. As the service was rendered outside India, it is not considered an import of services and therefore not subject to IGST.

06 December 2022 A Ltd an Indian co. getting its technical inspection done by B, a foreign entity (no PE in India), in a Company outside India.

Is IGST payable by A Ltd for service provided by B??

07 December 2022 IGST not applicable as service received outside India.

07 December 2022 Any reference from the act??

07 December 2022 Any reference from the act??

08 December 2022 Section 2(11), IGST Act, 2017: Import of services

The term “import of services” means the supply of any service, where:

the supplier of service is located outside India.
the recipient of service is located in India.
the place of supply of service is in India.

As service provided outside it will not fall under import of service.
Service provided outside taxable territory not taxable under GST.


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