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GST Applicability

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Vivek Sunil Mule

Chartered Accountant

75 Points Posted on 24 March 2021

Dear Sir / Madam,

I have query regarding GST applicability in below cases

ABC India situated in Greater Noida, India, is subsidiary of ABC China.

ABC India have purchased one plant from Chinese vendor M/s PQR.

Now ABC India is asking to do Installation of that equipment for which XYZ Pvt Ltd. (Indian Company) will get order and payment from China vendor.

1) XYZ Pvt Ltd. will get installation order and payment from china vendor for providing service in India. Will the GST applicable?

2) XYZ Pvt Ltd. will provide some material on that order in India. Will the GST applicable?

3) If China vender pays XYZ Pvt Ltd. in Dollar. Will the GST applicable?

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 24 March 2021

XYZ pvt. ltd. is service provided. GST is applicable. A ‘taxable person’ under GST, is a person who carries on any business at any place in India and who is registered or required to be registered under the GST Act. Any person who engages in economic activity including trade and commerce is treated as taxable person. ‘Person’ here includes individuals, HUF, company, firm, LLP, an AOP/ BOI, any corporation or Government company, body corporate incorporated under laws of foreign country, co-operative society, local authority, government, trust, artificial juridical person.