GST on services by Bank to its branch / head-office outside India : CBIC Clarify

By | June 4, 2018
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(Last Updated On: June 4, 2018)

Are services supplied by a Bank to  its branch / head-office outside India, which are neither intermediary services nor services to account holders, taxable under GST?

GST is a destination based consumption tax. Such services provided by a Bank  or the branch of a foreign Bank in India to its offshore branch / head-office, which are neither intermediary services nor services to account holders, are inter-State supply of services between distinct establishments (as per section 7(5)(a) read with Explanation to section 8 of the IGST Act, 2017), and will be
taxable in India, as the location of the supplier is in India and the place of supply is outside India.

Such services will not be treated as exports in view of the sub-clause (v) of section 2(6) of the IGST Act, 2017 read with Explanation 1 to section 8 of the IGST Act, 2017.

 

Q 54 of GST FAQs on Financial Services Sector published by CBIC

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
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tax deduction at source

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