Import of Service

[Kaustubh Karandikar]

XYZ(India) had sent documents, drawings and specifications of a component to PQR(UK). PQR had studied the said documents / drawings and based on that had given a certification / report regarding the component. XYZ paid certification fees to PQR in foreign currency. Is XYZ required to pay GST under reverse charge on the amount paid? In my view it will fall under Section 13(2) of IGST Act and XYZ will be liable to pay GST under reverse charge. Kindly confirm.

[ABHISHEK TRIPATHI]

Dear Kaustubh Sir,

What about OIDAR? Wont it go there?

[Ganeshan Kalyani]

Sir, it is an import of service.

[Vinod TK]

In this transaction the exporter(XYZ-India) paid to the overseas service provider (PQR-UK) for the certification which was received by the exporter in India. There is no liability of GST in this case.

AI Summary

Import of Service: reverse charge GST on overseas certification fees disputed, with conflicting views on OIDAR applicability. Whether payment by an Indian recipient to a foreign certifier for certification constitutes an import of service attracting GST under the reverse charge mechanism under the IGST Act is disputed: one view treats it as taxable under reverse charge for certification fees, another questions classification as OIDAR services, while another reply denies GST liability.