Training Outside India- Implication under GST

[Shiv Tomar]

The company is sending the pilots (which are on the permanent payroll) outside India for training purpose. The invoice is raised by the service provider who is situated outside India to the aviation company. Is aviation company liable to pay GST under RCM on this transaction ??

 

AI Summary

Place of supply rules: Training performed abroad is outside taxable territory, so reverse charge is not triggered.
Training services physically performed outside India by a non-resident supplier are treated, for place-of-supply purposes, as located where the services are actually performed; if both supplier and performance are outside India the place of supply is outside the taxable territory. Consequently such services are not treated as import of service and do not attract the reverse charge mechanism in India; an invoice from a foreign provider alone does not create import-of-service liability where the service is enjoyed outside India.