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.

AI Summary

Debate Over GST Liability for XYZ's Foreign Certification Service: Reverse Charge Under IGST Act Section 13(2) Questioned XYZ, an Indian company, sent documents to PQR, a UK-based entity, for certification of a component. PQR provided the certification, and XYZ paid the fees in foreign currency. The query raised was whether XYZ is liable to pay GST under reverse charge for this service. One respondent suggested it falls under Section 13(2) of the IGST Act, implying GST liability. Another questioned if it could be classified as an Online Information Database Access and Retrieval (OIDAR) service. A third respondent concluded that there is no GST liability for XYZ in this transaction.