Rent a cab in Foreign Country - RCM Implication

[KSA Associates]

Mr. A, director of ABC Ltd. paid for cab service in Foreign country while he was meeting the foreign clients. Prima Facie, it seems that place of supply will be India as per section 13(2) of IGST Act.

Kindly comment on Place of supply as well as RCM Applicability on said transaction.

AI Summary

Place of supply determines GST: if supply is deemed in India, reverse charge on imported cab service applies to the recipient.
Whether GST and reverse charge apply turns on place of supply. If the general place of supply rule makes the recipient's location India, the foreign cab service is an imported service and GST is payable under reverse charge by the Indian recipient (invoice name and recipient status matter) and input tax credit may be available. If the passenger transport/embarkation rule applies (place where passenger boarded), the supply is outside India and no reverse charge arises. The outcome depends on service characterisation, embarkation point, invoice recipient, hiring duration, and recipient status.