GST on reverse charge basis

[Lalitha Krishnamurthy]

One of our clients, a recognized educational institution and not registered under GST Act, has invited some guest professors from abroad to deliver lectures. The return airfare of the foreign professors would be reimbursed by the client, in foreign currency, at actuals. Is there any liability to pay IGST on reverse charge basis on the reimbursed amount? Experts' opinion would be greatly appreciated.

AI Summary

Reimbursement of Airfare to Foreign Professors May Trigger IGST Under Reverse Charge; GST Registration Advised An educational institution, not registered under the GST Act, is reimbursing airfare for foreign guest professors. The query is whether this reimbursement incurs IGST on a reverse charge basis. Experts discuss the applicability of GST, noting that educational services have specific exemptions. However, reimbursement of airfare and any remuneration to foreign professors could be taxable under reverse charge mechanism (RCM). The institution is advised to register under GST due to receiving services from a non-taxable territory. The discussion centers on whether reimbursed airfare constitutes a taxable service and if the arrangement requires GST registration.