Reverse charge on repairs carried out outside India, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ (Manufacturer from India) received back the goods from PQR (U.K.) after repairs under the cover of a Bill of Entry for the repaired goods and XYZ had taken credit of the IGST charged in the Bill of Entry. PQR had carried out the repairs outside India i.e. in U.K. PQR had issued a separate Invoice to XYZ towards repair charges in foreign currency. Is XYZ liable to pay GST on it under reverse charge? If yes under which section?

Posts / Replies

[SHARAD ANADA]

Please refer Sec 2(11) of IGST Act 2017 for definition of import of service and Sec 13(3)(a) of IGST for POS. in my view this transaction is not a transaction of import of services as POS is not in India as per Sec 13(3)(a)

[Kaustubh Karandikar]

Yes sir, fully agree. thanks.