RCM Provision in case supplier is located in non taxable territory

[KSA Associates]

As per notification no.10/2017 of IGST (rate),

Sr. no 1 states that in case of supplier is located in non taxable territory and recipient is located in taxable territory, than the provision of RCM will be applicable. The Sr.no 1 stays silent on whether this provision is applicable only in case place of supply is in India or place of supply is outside India.

In case of Savio jewellery it has been taken stand that in case place of supply is outside India then also provisions of RCM will be applicable.

Dear expert, kindly evaluate whether in case of place of supply is outside India whether the provisions of RCM under Sr no 1 will be applicable or not?

AI Summary

RCM Under GST Notification 10/2017 Challenges Interpretation of Place of Supply and Tax Liability Across Territories A legal discussion forum explores the applicability of Reverse Charge Mechanism (RCM) under GST Notification 10/2017 when a supplier is in a non-taxable territory. The key issue centers on whether RCM applies when the place of supply is outside India. While the notification's language is broad, strict interpretation of the IGST Act suggests RCM should not apply if place of supply is outside India. However, judicial precedents like the Savio Jewellery case have taken a broader view, potentially creating uncertainty for taxpayers.