GST liability by foreign contractor to Indian client

[VIVEK SHARMA]

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?

AI Summary

GST Applicability for Cross-Border Services: Saudi Contractor to Indian Company and Indian Company to UAE Company A Saudi Arabian client hires a UAE-based company for services in Saudi Arabia. The UAE company subcontracts an Indian company with a valid GSTIN, which further hires a Saudi-based contractor. The query concerns whether GST applies when the Saudi contractor invoices the Indian company and when the Indian company invoices the UAE company. The response indicates that the applicability of GST depends on the nature of the service. If the place of supply is the recipient's location, the first scenario involves import of service, and the second involves export of service.