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

Place of supply rules determine domestic GST liability on intermediary exhibition services, requiring CGST and SGST rather than IGST.
A domestic intermediary arranging an India based exhibition for a foreign principal is supplying intermediary services with the place of supply at the event location in India; consequently the supply is not an export and should be subject to domestic GST as CGST and SGST rather than IGST.