GST payable on Services received outside India by registered person: Rajasthan HC

Savio Jewellery Vs Commissioner, Central Goods And Service Tax (Rajasthan High Court)

The civil writ petition filed by Savio Jewellery against the Commissioner, Central Goods and Service Tax, sought relief from the tax imposed on exhibition services received from a person located in a non-taxable territory on a reverse charge mechanism (RCM) basis. The petitioner contended that as per the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017, services received outside India cannot be taxed in India, especially in the case of exhibitions held outside India.

The petitioner argued that they were dealing with jewellery and participated in an exhibition held outside India, thus the services received outside India should not be subjected to Integrated Goods and Services Tax (IGST) in India.

However, the Assistant Advocate General (AAG) and counsel representing CGST opposed the petition, asserting that the petitioner is liable to pay IGST as per Section 13 of the IGST Act, which includes services received outside India, such as fairs and exhibitions. They referred to a notification issued by the Government of India under Section 5(3) of the IGST Act, specifying that services supplied by a person in a non-taxable territory to a recipient in the taxable territory are subject to IGST.