Import of Service

[Kaustubh Karandikar]

XYZ(India) exported goods to PQR(Malaysia). Subsequently, the goods required certain repairs for which XYZ appointed ABC(Singapore) to carry out the repairs. ABC carried out the repairs at Malaysia and charged the repairing charges to XYZ. Is XYZ liable to pay GST under reverse charge on amount paid to ABC?

AI Summary

Import of service: reverse charge may apply to foreign repair services for an Indian recipient unless place-of-supply locates them outside India.
Treatment depends on whether the foreign repair service is treated as an import of service, attracting GST under the reverse charge mechanism, or whether the place-of-supply rules locate the service outside India because the repairs were performed abroad, in which case no GST under reverse charge would apply.