TaxTMI 
TaxTMI 
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?
GST on exhibition expenses
07 Aug 2023 
6 Replies 
6482 Views Asked by
Place of supply outside India prevents import of services and generally avoids reverse charge, but reimbursements may trigger RCM.
Services for organisation or admission to an exhibition are supplied where the event is held; if the event is outside India the supply's place is outside India and does not qualify as an import of service, so reverse charge is generally not attracted. However, recoveries from an Indian principal require factual analysis: if treated as a pure agent reimbursement there is no supply, but if the recovery is a deemed supply or a related-party transaction that fails pure agent conditions, GST may apply under reverse charge. (AI Summary)
Services for organisation or admission to an exhibition are supplied where the event is held; if the event is outside India the supply's place is outside India and does not qualify as an import of service, so reverse charge is generally not attracted. However, recoveries from an Indian principal require factual analysis: if treated as a pure agent reimbursement there is no supply, but if the recovery is a deemed supply or a related-party transaction that fails pure agent conditions, GST may apply under reverse charge. (AI Summary)