Services Received and Consumed by Indian Registered Person at Exhibitions Held Outside India—Taxability of—CS. Pradeep Vyas

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The Tax Publishers GST--Import of Service Services Received and Consumed by Indian Registered Person at Exhibitions Held Outside India--Taxability of CS. Pradeep Vyas This article is focused on the analysis of taxability of services received and consumed by a registered person located in taxable territory at the events and exhibitions held in non-taxable territory in view of legal framework for levy of GST on import of services and recent judicial pronouncement. 1. Introduction Inter-State supplies are chargeable to tax as per section 5 of the Integrated Goods and Services Tax Act, (hereinafter referred to IGST Act), which is applicable to whole of India. GST is levied on inter-State supply as well as intra-State supply based on place of supply of goods and services. Section 5(3) of the IGST Act empowers the Government of India to specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both. The Government has issued Notification No. 10/2017-Integrated Tax (Rate), sr. no. 1 of said Notification specifies that on any service supplied by any person who is located in a non-taxable territory to any person located in the taxable territory (other than non-taxable online recipient), the whole of integrated tax leviable under section 5 of the IGST Act, shall be paid on reverse charge basis by the recipient of such services. In order to ensure the presence of Indian products in international markets, Indian traders resort to fairs and exhibitions that are organized outside India and for that purpose, they usually procure services in abroad. In this article, Ld. Author seeks to analyse taxability of such services in view of legal framework for levy of GST on import of services based on place of supply and related judicial pronouncements. 2. Legal framework for levy of GST on import of services The key provisions applicable to import of services based on place of supply are as under: Section 2(11) of IGST Act defines the term "import of services" to mean the supply of any service, where the supplier of service is located outside India, the recipient of service is located in India and the place of supply of service is in India. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Import of Service

Services Received and Consumed by Indian Registered Person at Exhibitions Held Outside India--Taxability of

CS. Pradeep Vyas

This article is focused on the analysis of taxability of services received and consumed by a registered person located in taxable territory at the events and exhibitions held in non-taxable territory in view of legal framework for levy of GST on import of services and recent judicial pronouncement.

1. Introduction

Inter-State supplies are chargeable to tax as per section 5 of the Integrated Goods and Services Tax Act, (hereinafter referred to IGST Act), which is applicable to whole of India. GST is levied on inter-State supply as well as intra-State supply based on place of supply of goods and services. Section 5(3) of the IGST Act empowers the Government of India to specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both. The Government has issued Notification No. 10/2017-Integrated Tax (Rate), sr. no. 1 of said Notification specifies that on any service supplied by any person who is located in a non-taxable territory to any person located in the taxable territory (other than non-taxable online recipient), the whole of integrated tax leviable under section 5 of the IGST Act, shall be paid on reverse charge basis by the recipient of such services. In order to ensure the presence of Indian products in international markets, Indian traders resort to fairs and exhibitions that are organized outside India and for that purpose, they usually procure services in abroad. In this article, Ld. Author seeks to analyse taxability of such services in view of legal framework for levy of GST on import of services based on place of supply and related judicial pronouncements.

2. Legal framework for levy of GST on import of services

The key provisions applicable to import of services based on place of supply are as under:

Section 2(11) of IGST Act defines the term "import of services" to mean the supply of any service, where the supplier of service is located outside India, the recipient of service is located in India and the place of supply of service is in India.