Export of service

[Kaustubh Karandikar]

XYZ (India) is receiving ‘Technical Consultancy services’ from a person outside India. GST under reverse charge is paid on it by XYZ. Subsequently, XYZ is recovering the amount paid towards consultancy from their parent company outside India. Is XYZ required to pay GST on the amount recovered from parent company?

AI Summary

GST Reverse Charge on Consultancy Services: Reimbursement Between Parent and Subsidiary May Not Attract GST, Further Details Needed XYZ, an Indian company, receives technical consultancy services from a foreign entity and pays GST under reverse charge. XYZ then recovers this amount from its parent company abroad. One response suggests that if this transaction is a simple reimbursement between the parent and subsidiary, it is not subject to GST. Another response indicates that more details are needed about the nature of the reimbursement to determine GST applicability.