GST on engineering services

[Kaustubh Karandikar]

XYZ(India) providing engineering service (Design, drawing etc) to PQR, Germany (Parent company). Services are provided online from India. Invoice would be raised by XYZ on hourly basis and rate. Is XYZ liable to pay GST on the amount received from PQR?

AI Summary

Indian Firm XYZ to Check GST Liability on Services to German Parent Under IGST Act Section 2(16) XYZ, an Indian company, provides engineering services such as design and drawing to its parent company, PQR in Germany, through online means. XYZ raises invoices based on hourly rates. A query was raised about whether XYZ is liable to pay GST on the payments received from PQR. The response suggests that XYZ should verify if their service meets the conditions outlined in section 2(16) of the IGST Act. If it qualifies as an export of service, it would be exempt from GST; otherwise, GST would apply.