Liaison Office not liable to pay GST on Services Rendered by Head Office

Last updated: 25 August 2021

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The Maharashtra Authority of Advance Ruling (MAAR) has ruled that the World Economic Forum's India Liaison Office is not liable to pay GST on services received from its Head Office. This is because the Liaison Office is not engaged in any business, and therefore, the services are not considered a 'Supply' under the CGST Act. Consequently, the office does not need to register for GST in India for these specific transactions.

Court :
Maharashtra Authority of Advance Ruling

Brief :
In The World Economic Forum, India Liaison Office, [GST-ARA- 11/2019-20/B-50 dated August 20, 2021], the World Economic Forum, India Liaison Office ('the Applicant') has sought clarification on whether the activities carried out by the Applicant's Head Office ('HO') located outside India would amount to Supply under Section 7 of the Central Goods and Services Tax Act, 2017 ('CGST Act') and if the same would be liable to Goods and Service Tax ('GST') in the hands of applicant. Along with that, the Applicant has also seeked clarification on whether it would be required to obtain registration in India under Section 24 of the CGST Act for the activities rendered by HO outside India considering the applicant is not engaged in any business.

Citation :
GST-ARA- 11/2019-20/B-50 dated August 20, 2021

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