TaxTMI 
TaxTMI 
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.
GST on reverse charge basis
03 Oct 2024 
10 Replies 
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Import of service: reimbursement of foreign professors' airfare can trigger reverse charge GST and registration obligations.
Reimbursement of foreign guest professors' airfare by an educational institution can constitute consideration and qualify as import of services with the place of supply in India, making GST liable under the reverse charge mechanism; the mode or currency of payment is immaterial, and registration may be compulsory where RCM applies, though exemptions for certain educational services do not automatically negate such liability and specific factual details determine the outcome. (AI Summary)
Reimbursement of foreign guest professors' airfare by an educational institution can constitute consideration and qualify as import of services with the place of supply in India, making GST liable under the reverse charge mechanism; the mode or currency of payment is immaterial, and registration may be compulsory where RCM applies, though exemptions for certain educational services do not automatically negate such liability and specific factual details determine the outcome. (AI Summary)