GST on reimbursement of expenses to holding company located outside India

In re ICU Medical India LLP (GST AAR Tamilnadu)

Q1.Whether GST is leviable on the reimbursement of expenses from the Subsidiary Company to its ultimate holding company located in a foreign territory outside India.

A1. The applicant is liable to pay IGST on the Wellsone Commercial Card’ expenses paid by the applicant to its Ultimate Holding company, ICU Medicals Inc. having its place of business in USA. under Reverse Charge basis as per SI. No 1 Notification 10/2017- Integrated Tax (Rate) dated 28.06.2017.

Q2. In case GST is leviable what is the rate of GST applicable to the said reimbursement of expenses?

A2. The rate of tax is 18% as per Sl.No.15 of Notification 8/2017 -Integrated Tax (Rate) dated 28.06.2011

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