XYZ (Belgium) had placed an order on PQR(India)for supply of Machinery. The drawings relating to these Machinery was supplied by XYZ to PQR and issued an Invoice on PQR towards recovery of Drawing charges. Is PQR required to pay GST under reverse charge on the amount paid to XYZ? In my view, it will fall under Section 13(2) of IGST Act and therefore, PQR will be liable to pay GST under reverse charge. Views of the experts please.
RCM on drawing charges paid
Replies (1)
If these drawing charges are in the nature of reimbursement as a pure agent then GST will not be applicable. If not then we have to see who is the registered person under GST
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