No GST on reimbursement of expense to Liaison office in India by HO

In re Habufa Meubelen B.V. (Indian Liaison Office) (GST AAR Rajasthan)

If the liaison office in India does not render any consultancy or other services directly/indirectly, with or without any consideration and the liaison office does not have significant commitment powers ,except those which are required for normal functioning of the office, on behalf of Head Office, then the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V. (HO) to the Liaison Office, established in India, is not liable to GST and the applicant i.e. M/s Habufa Meubelen B.V. Jaipur, is not required to get itself registered under GST.

FULL TEXT OF ADVANCE RULING

(A) SUBMISSION OF APPLICANT:

1. M/s. Habufa Meubelen B.V. (hereby referred to as HO), is a company originally incorporated in Netherlands.

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