GST on Reimbursements

[Madhavan iyengar]

A overseas Company (B) based in Russia has asked an Indian Party (Y) based in Gujarat to make arrangement for conduct of exhibition in Tamilnadu

Y based in Guajrat instructs event management company Z in Tamilnadu to arrange for all facilities for exhibition.

Z will raise an IGST invoice on Y for the event management services

Y will take credit of IGST

Now Y will raise invoice on B based in Russia ( back to back invoice or with some margin)

Query : will Y have to charge GST (if the invoice is back to back) then which GST to be charged IGST or CGST/SGST

If Y has to charge GST ( if the invoice is with margin) then which GST to be charged IGST or CGST/SGST

experts kindly clarify

AI Summary

Indian Company Y Faces GST Dilemma: Charge IGST or CGST/SGST for Services to Russian Firm? Experts Suggest CGST/SGST. An Indian company (Y) in Gujarat is arranging an exhibition in Tamil Nadu for a Russian company (B). Y hires an event management company (Z) in Tamil Nadu, which will charge IGST to Y. Y plans to invoice B either back-to-back or with a margin. The query is whether Y should charge GST and which type-IGST or CGST/SGST. Experts suggest CGST and SGST apply since Y acts as an intermediary, and the place of supply is India, not qualifying as an export. The discussion highlights complexities in determining the correct tax due to varying interpretations of GST laws.