Question 19: 1) In case a Foreign Company had been invoicing from abroad prior to GST as a service provider for taxable supplies in India, would the said company now be required to register under GST ' Does GST applies to foreign suppliers providing service in India '

1)(a) If yes, would the service recipient be required to deduct GST and deposit the same as reverse charge under GST.

2) If the said company, may register as a Non-resident taxable person under GST and bills now to Indian service recipients, should it charge GST with a Tax invoice under GST '

2)(a) In that case, would the service recipient be entitled to ITC on the same, as the same may fall under category of imports for service recipients in India.

2)(b) Moreover, would there be Custom Duty also leviable in any case on such import of services'

3) In case, the foreign company intends to set up a Branch Office in India, would that Branch Office be treated as a separate person distinct from it's parent company in India. If yes, so would it require registration under GST mandatorily'

3(a) In case, Branch Office of foreign Company needs to get mandatorily registered under GST, would the said Branch Office be entitled to avail ITC on it's Indian expenses on which GST is paid.

3(b) Branch office would need to file simple GSTR-3B, 1 , 2 , 3 or GSTR-5 for non-resident taxable person.

3(c) In case, Branch Office receives funds from it's foreign company for expenses and working capital, would the Branch Office be required to raise a GST invoice to it's Parent Company, towards services rendered to Parent company.

3) (d) In case, Branch Office repatriates, money abroad to it's parent company, as part of it's surplus or otherwise, in such case, would the Branch Office be required to adhere to any compliance under GST or similar allied laws.

Answer: Point-wise reply to your quarry is given here under;

1. A foreign company supplying service in India and raising invoice from out side India is not required to be registered under GST in India. According to Notification No. 10/2017-IGST (Rate) dated 28.06.2017 in Table appended to the Notification against Sr. No. 1, liability to pay IGST in India lies on the recipient of service in India Section 7(1)(b) of CGST Act

2. A non-resident person is required to be registered temporarily in India as per the provisions of Section 24(v) of CGST Act, 2017 for conducting is business for a short duration in India, normally 90 days and the duration can be extended on the request of the non-resident person. He will have to declare the estimated volume of business to be done by him and the entire tax amount involved will have to be deposited by him in advance. He will issue tax invoice in India for the supplies being made by him and will keep on deducting the tax amount from the already deposited tax amount. If the entire tax deposited in advance is not consumed he can take refund of the remaining amount and in case the already deposited tax amount falls short then he will again deposit amount in advance.

2(a). Once the non-resident person had obtained registration under GST in India, then there is no question of import of service. Now service is being provided in India. According to Section 2(71) of CGST Act, 2017.location of the supplier of service is his place of business.and place of supply will be very from transaction to transaction

2(b). There is no Customs duty involved on the import of service. Customs duty is levied on import of goods only.

3 If the company establish their business in India. then all the provisions of GST would be applicable on him.

3(a) and (b). Once a foreign company becomes operative in India, then it can function as a local company and all provisions of GST law would apply to it. ITC will be available

3(c) and (d). Giving of loan by one unit to other is not involve supply of goods or supply of service. Thus, no need to raise any tax invoice under GST (REPLY dt. 2/2/2018)