GST liability by foreign contractor to Indian client

[Guest]

Good afternoon Forum members.

My query for subject matter is as following:

A Saudi Arabian client (say A) hires a UAE based comapny (say B) for some supply of services at Saudi Arabia. Company B hires an India based company with valid GSTIN (Say C) for this job. The company C hires a Saudi based contractor (Say D) for this job.

Now,

1) when the company D (From Saudi) will raise invoice to the company C (From India), whether the same will attract GST?

2) When the company C (From India) will raise invoice to the company B (From UAE), whether the same will attract GST or any other international tax between India and UAE?

[Shilpi Jain]

The answer to this query will depend on the nature of servicve. In case it is a service where the place of supply is to be the place of the recipient of service then the first case will be that of import of service and the 2nd query will be an export of service.

AI Summary

Place of supply determines GST liability: import of services for inbound legs and export treatment for outbound legs. GST liability hinges on the place of supply: a Saudi contractor's provision to an Indian company will be an import of services if the recipient's location is the place of supply, invoking Indian import of service rules; the Indian company's supply to the UAE client will be an export of services if the place of supply is outside India, invoking export treatment.