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Repairs carried out outside India, Goods and Services Tax - GST

Issue Id: - 117507
Dated: 22-9-2021
By:- Kaustubh Karandikar

Repairs carried out outside India


  • Contents

XYZ(India) exported the goods to PQR(U.K.). On examining the goods on receipt, it was observed by PQR that it requires certain repairs which PQR did on his own and the repairing charges was recovered from XYZ. Will this transaction fall under Section 13(2) of IGST Act and therefore XYZ liable for reverse charge or it will fall under Section 13(3)(a) i.e. location where the services are actually performed and since it is performed outside India, XYZ not liable under RCM? In my view, it will fall under Section 13(3)(a) and therefore no RCM for XYZ. Views of the experts please.

Posts / Replies

Showing Replies 1 to 4 of 4 Records

Page: 1


1 Dated: 24-9-2021
By:- Shilpi Jain

Instead can it not be treated as a deficiency in supply and treated as a Credit note required to be issued for the exports made?


2 Dated: 24-9-2021
By:- Palanisamy KS

Since the repair is required to be done on the goods exported in their physical location, 13(3)(a) would be more appropriate. While the option of credit note may also be considered, it could result in correspending reduction of export benefits claimed.


3 Dated: 25-9-2021
By:- Ganeshan Kalyani

In my view, RCM is not applicable.


4 Dated: 28-11-2021
By:- Shilpi Jain

Yes, RCM will not be applicable, You may have to see if the exports are to be reduced or should be treated as expense.


Page: 1

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