RCM OF EXHIBITION CHARGES PAID OUTSIDE INDIA

[NILESH PITALE]

DEAR EXPERTS

MY CLIENT HAS PAID EXHIBITION STALL CHARGES IN THE OUTSIDE INDIA(USA). HE HAS CLAIMED THE SAME EXPENSESS IN HIS PROFIT & LOSS ACCOUNT.

QUESTION : IS IT RCM APPLICABLE ON STALL CHARGES PAID IN THE OUTSIDE INDIA(USA).

PLEASE GUIDE

AI Summary

Reverse Charge Mechanism Not Applicable for Overseas Exhibition Stalls Under Section 13(5) IGST Act, Experts Confirm A client paid exhibition stall charges in the USA and inquired if Reverse Charge Mechanism (RCM) under GST applies. Experts responded that since the supplier and place of supply are outside India, RCM is not applicable. They referenced Section 13(5) of the IGST Act, confirming the location as a non-taxable territory. Despite a recent Rajasthan High Court decision causing uncertainty, the consensus remains that RCM is not applicable. One expert highlighted that in conflicts between the Act and notifications, the Act prevails, citing a Supreme Court ruling. The discussion emphasized the complexity and evolving nature of GST interpretations.