XYZ (Belgium) had placed an order on PQR(India)for supply of Machinery. The drawings relating to these Machinery was supplied by XYZ to PQR and issued an Invoice on PQR towards recovery of Drawing charges. Is PQR required to pay GST under reverse charge on the amount paid to XYZ? In my view, it will fall under Section 13(2) of IGST Act and therefore, PQR will be liable to pay GST under reverse charge. Views of the experts please.
Kaustubh Ram Karandikar Asked question September 23, 2021
Your view is correct, transaction will be exigible to GST under the reverse charge mechanism being import of services.
Team Taxwallah
Frah Saeed Changed status to publish January 23, 2022