RCM applicability

[Amulya gm]

Out Company service related company. we are providing trainings to outside india participant.

If the company located in India and participant out side india and trainer also from outside india then RCM applicable or not ?

[SHARAD ANADA]

Location of supplier or location of recepient is outside India than place of supply will be determined by sec 13 of IGST Act 2017. In your case sec. 13 (3)(b) of IGST Act 2017 will be applicable.

(3) The place of supply of the following services shall be the location where the services are actually performed, namely:-

(b) services supplied to an individual, represented either as the recipient of services or a person acting on behalf of the recipient, which require the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of service.

In your case charge CGST - SGST from foreign paticipant under forward charge.

As your company is supplier of service Question of RCM is not relevant

[SHARAD ANADA]

In case of trainer who is coming from out side India to provide services in India then they become Non resident taxable person and they have to register them selves in India under GST law and they have to charge GST on their bills.

[KASTURI SETHI]

In my view, in first situation it is export of service covered under Section 13 (3)(b) of IGST and in the second situation it is import of service and RCM is applicable.

AI Summary

Place of supply rules determine GST treatment; reverse charge not triggered where domestic supplier exports training services. Place of supply rules assign the place where services requiring the recipient's physical presence are actually performed; applied to cross border training this provision renders the supplying company as supplier for GST and makes reverse charge mechanism irrelevant to the company. A nonresident trainer performing services in India is a nonresident taxable person required to register and charge GST on their invoices, while a contrasting view treats the first scenario as export and the trainer's arrival as import subject to RCM.