GST on Services by Overseas branch office to Head Office in India
As per the Revised Model GST Law released in Nov 2016 definition of Import of Service has been amended and the person needs to pay GST on Services by Overseas branch office to Head Office in India.
“Import of service” as per Revised Model GST Law
” Import of service” means the supply of any service, where
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India, and
(c) the place of supply of service is in India;
[Section 2(112) of CGST Act 2016 read with Section 2(10)/(11) of IGST Act 2016 ]
Definition of “ Import of service “ as per Old Draft Model GST Law -june 2016
The supply of any service shall be treated as an “Import of service” if,
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India,
(c) the place of supply of service is in India, and
(d) the supplier of service and the recipient of service are not merely establishments of a distinct person;
Explanation 1.- An establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons.
Explanation 2.- A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an establishment in that territory. [Section 2(51)/ (52)]
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