VISA FEES PAID TO CONSULATE GENERAL FOR THE STATE OF KUWAIT

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This discussion clarifies whether visa fees paid to the Kuwait Consulate are subject to GST. The consensus is that these fees, paid on behalf of clients and later reimbursed, are exempt from GST. Only the service charges levied by the agency are taxable. This is in line with GST Law 2017, specifically notification number 12/2017, which exempts government-provided services like visa issuance from GST.

Ravi K Darji

Ravi K Darji (Querist)
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10 April 2020 DEAR SIR/MADAM,

VISA FEES PAID TO KUWAIT CONSULATE FOR KUWAIT VISA IS 5000/- PER VISA AND WE CHARGE FROM CLIENT RS.5590/- (VISA FEES RS.5000/- + SERVICE CHARGE RS.500/- + GST 18% RS.90/-) .

MY QUESTION IS THE VISA FEES WE PAID TO KUWAIT EMBASSY IS COVER UNDER GST OR NOT ?

WE PAID RS.5000/- FEES TO KUWAIT EMBASSY ON BEHALF OF OUR CLIENT AND LATER ON SAME IS RE-REIMBURSE FROM CLIENT.

AT THE TIME OF FILING OF GST RETURN WE BOOK ONLY SERVICE CHARGE (I.E.TAXABLE VALUE) IT IS THE PROPER WAY ? OR WE HAVE TO CONSIDERED REIMBURSE AMOUNT ALSO.

PLEASE GUIDE AND IF VISA FEES PAID IS TAX FREE THEN PROVIDE NOTIFICATION AVAILABLE .

CA Suresh Jain

CA Suresh Jain (Expert)
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11 April 2020 Yes, the payment of GST only on your service charges is correct.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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11 April 2020 As per GST Law 2017, there is no GST payable on Services provided by Government or a local authority by way of visa. The visa processing charges charged by consulates/embassies will be exempt from the payment of GST.

"Services provided by the Central Government, State Government, Union territory or local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate."

You can refer to Sl. No. 61 of the notification no. Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017

Ravi K Darji

Ravi K Darji (Querist)
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11 April 2020 thank yo Suresh Sir and Spurto Consultancy for Revert. So my way is correct.thank you.

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