GST taxability on certification courses by employees

[RameshBabu Kari]

Dear Experts,

A Software company reimburses certification course done by the employees of the company through online from the institute located in USA in non taxable territory. After completion of the Course, company will reimburse to expenditure inccured to get that certificate and does it attract RCM ? if so, can company avail ITC on such RCM ? Does amounts to import of service ?

[KASTURI SETHI]

Replies to all queries is "YES". Comprehensive reply on this issue has been given by Sh.Ranganathan Sir in this forum a few days back.

[Himansu Sekhar]

Normally reimbursement to employees do not attract gst. But recently clarifications issued by board through FAQ which opined that tax on RCM applicable. Ambiguity persists.

AI Summary

Reverse charge on cross-border employee certification reimbursements may attract GST, raising ITC and import-of-service questions.
Whether employer reimbursement of certification fees to an overseas institute is taxable depends on characterization as import of services and on applicability of the reverse charge mechanism (RCM); one view affirms RCM and GST applicability, another notes traditional non taxability of reimbursements but cites FAQs indicating possible RCM liability, leaving ITC eligibility and RCM liability unresolved.