GST on exhibition expenses

[Kaustubh Karandikar]

XYZ, the subsidiary outside India had made some expenses towards exhibition held outside India and amount of the same was recovered from PQR which is the principal in India. Whether PQR is required to pay GST under reverse charge?

AI Summary

No GST Reverse Charge on Exhibition Expenses Abroad for Indian Company Under IGST Act, 2017; Further Analysis Needed A query was raised regarding whether the principal company in India, PQR, must pay GST under reverse charge for exhibition expenses incurred by its subsidiary, XYZ, outside India. Responses indicated that since the place of supply is outside India, it does not qualify as an import of services under the IGST Act, 2017, and thus, no reverse charge mechanism (RCM) applies. Experts agreed that the transaction does not fulfill the conditions for import of service, and further analysis is needed to determine if it constitutes a supply or a reimbursement under pure agent conditions.