Reverse Charge

[Kaustubh Karandikar]

MR. XYZ is on the pay roll of PQR Ltd. (India). He has been deputed to work in Singapore and his salary is transferred from Indian Bank of PQR to the Singapore bank of XYZ and gets converted in to US$ in XYZ’s bank account in Singapore. Is PQR liable to pay GST on it under reverse charge?

AI Summary

GST Not Applicable for Employee Deputed Abroad: No Supply of Goods or Services Under Schedule III, CGST Act 2017. A query was raised regarding the applicability of GST under reverse charge for an employee, XYZ, of PQR Ltd. in India, who is deputed to work in Singapore with salary transferred to a Singapore bank account. Three responses clarified that since the relationship between XYZ and PQR Ltd. is that of employer and employee, as per Schedule III of the CGST Act, 2017, these transactions are neither a supply of goods nor services. Consequently, GST is not payable in this scenario.