Invocing by Branch in India to its Headquarters Abroad

[Lakshmi subramanian]

Dear Experts

Great Day

Am pleased to enter into this August Forum on this Independence Day.

Am practicing Chartered Accountant and am giving below the short notes relating to the captioned title above pertaining to my client.

Short Notes on Title above

My client is incorporated abroad and having branch in India as per Permission granted by RBI . The services include submissions of manifests to the customs on behalf of airlines through online by using the web portal of the client and Indian customs.. The branch raises the invoices on the airlines in India with applicable service tax and adhere the service tax compliance. Few airlines are having global contract and straightaway making remittance in its HQ. Branch raises invoice on those cases to HQ with service tax and adhere the service tax compliance. This is on the background that services rendered and consumed in India and mere remittance alone in HQ and to avoid any complications Management has treated like domestic transactions and adhere the service tax compliance.

Under GST scenario, the Management decided to use the same method to adhere GST by raising invoices on HQ since supply and consumption of services in India.

Trust the above short notes adequate for query mentioned below and further required information will be provided within our limits.

Query No 01.

Whether CGST and SGST rate (9%+9%) applies or IGST 18% rates applies on invoices raised by branch on HQ

Query No.02

HQ is not having GSTIN. The invoicing amount crosses the basic exemption limit. How to upload GSTR1 without GSTIN

Query No.03

Is there any issue on taking input credit due to query no. 02

Requesting you to share views on above queries.

Thanks in Advance

With Warm Regards

Mr.Lakshmi

AI Summary

Place of supply determines CGST/SGST or IGST; Indian branch must register, invoice with GSTIN and file GSTR 1.
Whether central/state GST or integrated GST applies depends on the place of supply and locations of supplier and recipient: same State establishments attract central and state GST, different States attract integrated GST, and supplies to locations outside the taxable territory require application of place of supply rules. An Indian branch rendering services in India must register under GST, file GSTR 1 and issue invoices quoting its GSTIN; the foreign head office need not obtain GSTIN merely for receiving remittances. Input tax credit is available to the registered recipient and the branch can claim credit on inputs used.