ANALYSE whether the transaction between ESL and Click Ltd. attracts any GST under Goods and Service Tax law? If Yes, then who is liable to pay GST…

(a) In the given case, since the service provider – Click Ltd. is outside India, and the service recipient - ESL is in India and given service viz. technical services, does not get covered under any of the specific provisions of section 13 of the IGST Act, 2017, place of supply will be governed by the default provision, i.e. location of recipient of service, which in this case is Bengaluru (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. As per Notification No. 10/2017 ITI 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, ESL Ltd. Will pay GST under reverse charge on 2,00,000 paid by it to Click Limited in UK. The time of supply of services taxable under reverse charge is the earliest of the following: (a) Date of payment (b) 61st day from the date of issue of invoice, in cases where invoice is required to be issued by the supplier (c) Date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient. Thus, time of supply is 28th December, 2024. Since tax liability arises in December, 2024, payment is to made in the month of January, 2025.