Question

XYZ (India) is sending their employees abroad for company’s work. The employees are staying in a Hotel at abroad and bill for the same is paid through credit card by the employee initially and XYZ is then paying the same to the credit card company after receiving the invoice from credit card company. Is XYZ liable to pay GST on it under reverse charge being import of service? If yes under which provisions?

Answer

The service is considered as import of service if following conditions given in section 2(11) are satisfied i.e.:
''import of services' means the supply of any service, where''
(i) the supplier of service is located outside India;
(ii) the recipient of service is located in India; and
(iii) the place of supply of service is in India;
The Place of supply in the given case is determined under section 13(4) of IGST as the place where the immovable property is located or intended to be located i.e. Outside India (Location of Hotel). Therefore it is not import of service and thus GST is not applicable. (Reply dt.24/11/2018)