Do you think that transaction between GEL and Mark Ltd. attracts any GST under Goods and Service Tax Act? If Yes, then who has to deposit GST and in…

7 In the given case, the since service provider – Mark Ltd. is outside India, and the service recipient – GEL is in India and given service does not get covered under any of the specific provisions of section 13, place of supply will be governed by the default provision, i.e. location of recipient of service, which in this case is Chennai (India). Further, the given case is import of service as the supplier of service is located outside India, the recipient of service is located in India and the place of supply of service is in India. Since the services are imported for a consideration from an unrelated person, the same tantamounts to supply and are liable to GST. As per Notification No. 10/2017 IT(R) dated 28.06.2017, if a service is supplied by a person located in a non-taxable territory to a person located in the taxable territory, other than non-taxable online recipient, the tax is payable by the recipient of service under reverse charge. Therefore, GEL Ltd. will pay GST under reverse charge on £ 1,00,000 paid by it to Mark Limited in UK. The time of supply of services taxable under reverse charge is the earlier of the following: Date of payment, orDate immediately following 60 days since issue of invoice by the supplier. Thus, time of supply is 22nd January, 2024. Since tax liability arises in January, 2024, payment is to made in the month of February, 2024.