After Sale Services in India to an overseas companies

[Manish Sulakshane]

Dear Sir,

We are providing after sales services in India to an overseas companies against which we will received remuneration in GBP. Kindly advice whether this is liable to GST?. If yes what producer is to be adopted as the customer will not pay us the GST amount ?

[KASTURI SETHI]

It is taxable, place of Supply is located in India.

[Manish Sulakshane]

Dear Sir,

Thank you for your Reply.

Would you please advise us the producer to be followed as the overseas customer would not pay GST amount to us. Further, we will provide them services on offshore (on Sea) if required.

[KASTURI SETHI]

See Rule 35 of CGST Rules, 2017. Consideration received by you is to treated as cum-tax Value i.e. inclusive of GST. Formula to arrive at taxable value is given in the rule.

[CSSANJAY MALHOTRA]

I endorse views of Sh Kasturi ji.

AI Summary

GST on after sales services: place of supply in India renders services taxable and value treated as inclusive of tax. After sales services to overseas companies are taxable because the place of supply is in India; the consideration received must be treated as cum tax value (inclusive of GST) and the prescribed valuation formula is to be used to compute the taxable value, including where services are performed offshore.