Import of services: additional facilitation fees for ESOP/RSU issuance attract GST payable by the domestic subsidiary on reverse charge. Securities, including shares issued as ESOP/ESPP/RSU, are neither goods nor services under the WBGST Act and ESOP/ESPP/RSU granted as remuneration fall under Schedule III exclusion; reimbursement by the domestic subsidiary to the foreign holding company on a cost-to-cost basis does not amount to import of services and is not subject to GST. Where the foreign holding company charges any additional fee, markup or commission over cost, that excess is consideration for facilitation services and is taxable as an imported service, with GST payable by the domestic subsidiary on reverse charge basis.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Import of services: additional facilitation fees for ESOP/RSU issuance attract GST payable by the domestic subsidiary on reverse charge.
Securities, including shares issued as ESOP/ESPP/RSU, are neither goods nor services under the WBGST Act and ESOP/ESPP/RSU granted as remuneration fall under Schedule III exclusion; reimbursement by the domestic subsidiary to the foreign holding company on a cost-to-cost basis does not amount to import of services and is not subject to GST. Where the foreign holding company charges any additional fee, markup or commission over cost, that excess is consideration for facilitation services and is taxable as an imported service, with GST payable by the domestic subsidiary on reverse charge basis.
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