Reverse charge on repairs carried out outside India

[Kaustubh Karandikar]

XYZ (Manufacturer from India) received back the goods from PQR (U.K.) after repairs under the cover of a Bill of Entry for the repaired goods and XYZ had taken credit of the IGST charged in the Bill of Entry. PQR had carried out the repairs outside India i.e. in U.K. PQR had issued a separate Invoice to XYZ towards repair charges in foreign currency. Is XYZ liable to pay GST on it under reverse charge? If yes under which section?

AI Summary

No GST Reverse Charge on Repairs from UK: Not an Import of Services per IGST Act Sections 2(11) & 13(3)(a). XYZ, an Indian manufacturer, received repaired goods from PQR in the UK, accompanied by a Bill of Entry. XYZ took credit for the IGST charged. PQR issued an invoice to XYZ for the repair charges in foreign currency. The query is whether XYZ must pay GST under reverse charge. One response suggests that, based on Section 2(11) and Section 13(3)(a) of the IGST Act 2017, this is not an import of services transaction since the place of supply is outside India. Another participant agreed with this interpretation.