TaxTMI 
TaxTMI 
XYZ, Belgium had exported the goods to a customer in West Bengal, India. Subsequently, some repair was required to be carried out on these goods. On the instructions of XYZ, Belgium, PQR, India had carried out these repairs at West Bengal and amount for the same was recovered from XYZ, Belgium. Is PQR required to pay GST on amount recovered from XYZ. Sir, in my view it will fall under Section 13(3) and since the service is performed in India, PQR is liable to pay GST. Kindly confirm.
Export of service
23 Aug 2021 
5 Replies 
1677 Views Asked by
Place of supply determines GST liability for repair services in India; exemption applies if goods are temporarily imported and re exported.
Taxability of repair charges depends on place of supply and whether goods were temporarily imported for repair and exported thereafter without being put to use in India; if goods are treated as temporarily imported and exported after repair, the proviso excludes the service from domestic supply and supports export of service treatment, whereas if the goods are deemed used or remain in the taxable territory the repair service is a taxable supply in India and GST must be remitted accordingly. (AI Summary)
Taxability of repair charges depends on place of supply and whether goods were temporarily imported for repair and exported thereafter without being put to use in India; if goods are treated as temporarily imported and exported after repair, the proviso excludes the service from domestic supply and supports export of service treatment, whereas if the goods are deemed used or remain in the taxable territory the repair service is a taxable supply in India and GST must be remitted accordingly. (AI Summary)