Place of supply and type of GST payable

[Kaustubh Karandikar]

XYZ(India) imported goods from PQR(UK). These goods were found defective and XYZ did the repairs in India and recovered the repairing cost from the foreign supplier viz. PQR(UK). In my view, this will fall under Section 13(3) of IGST Act, and as per that since the services are performed in India, XYZ is required to pay GST i.e., CGST + SGST since place of supply is India. However, while filing returns / paying tax, by default it is taking IGST and not allowing to pick up CGST + SGST. Views of the experts please.

AI Summary

Indian Company Disputes GST Classification on Repaired Imported Goods Under Section 13(3) of IGST Act XYZ, an Indian company, imported defective goods from PQR, a UK supplier, and repaired them in India, recovering the repair costs from PQR. XYZ believes the service falls under Section 13(3) of the IGST Act, requiring payment of CGST and SGST as the place of supply is India. However, the system defaults to IGST during tax filing. An expert, Shilpi Jain, argues that since no service is provided by PQR to XYZ, it shouldn't be considered an import of service. The terms of the agreement are crucial in determining the correct GST treatment.