GST on testing charges

[Madhavan iyengar]

A Company based in India has sent some samples abroad for testing purpose

Test will be conducted in London and report will be sent to india

Is Indian Company required to pay RCM on the invoice for testing charges

[Ganeshan Kalyani]

IGST payable under RCM as it is import of service.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani Ji. Place of supply is covered under Section 13(2) of IGST Act. Also see Section 7(1)(b) read with Schedule-1 (Serial No.4).

[YAGAY and SUN]

If you had sent samples under GR Waiver form then either you have to submit Destruction Certificate for the samples or you would have to bring them in India or foreign remittance.

[Madhavan iyengar]

dear sir

thanks all the experts for providing very good insights

the services taxation under gst is very challenging hence every issue needs to be deliberated

[KASTURI SETHI]

Dear Sh.Madhavan Iyengar Ji,

You are absolutely right. Nobody is perfect. GST law being new, all are at par. I am also hard up. I have to labour hard for posting replies to the queries on TMI. In pre-GST era, I was having everything on tips regarding Central Excise & Service Tax, my thirty-three years' experience and knowledge have relegated into background after the implementation of GST Act.

We will have to adapt with GST. Our hard work should continue.

[Ganeshan Kalyani]

Hats off to your hard work Sri Kasturi Sir. Your replies indicates the hard work you put in to understand GST so that the query of the querist can be solved.

AI Summary

Reverse charge applies to cross-border testing services; recipient must discharge IGST as import of service.
The sending of samples abroad for testing that results in a report received in India constitutes an import of services, making IGST payable under the reverse charge mechanism by the Indian recipient. Where samples were exported under a GR waiver form, compliance may require a destruction certificate, bringing the samples back to India, or foreign remittance to satisfy export formalities.