IGST on Services Provided to Head Office abroad challenged in HC

By Editor Goods and Services Tax Judiciary October 3, 2017

TaxGuru Citation: 2017 taxguru.in 896
Case Name: DBS Bank Limited India Branches Vs Union of India & Anr (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

Delhi High Court has admitted petition challenging provisions of Section 7(5)(a) of the Integrated Goods and Services Tax Act, 2017 (IGST Act) to levy IGST on Banking Services provided by Branches of DBS Bank Limited India to its head office situated at Singapore as the place of supply of services is outside India.

The petition is filed by DBS Bank Limited India Branches through Advocate Abhishek A Rastogi and Advocate Rashmi Deshpande from Khaitan & Co.

Section 7(5)(a) says that Supply of goods or services or both- when the supplier is located in India and the place of supply is outside India shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.

Extract of High Court Order dated 27.09.2017 by Justice S. Muralidhar and Justice Prathibha M. Singh Accepting Challenges to Section 7(5)(a) of IGST Act, 2017 in C.M.No.35786/2017 (exemptions) read with W.P.(C) No.8732/2017 & C.M.No.35785/2017 (stay) is as follows:-

ORDER

27.09.2017

C.M.No.35786/2017 (exemptions)

1. Allowed subject to all just exceptions.

W.P.(C) No.8732/2017 & C.M.No.35785/2017 (stay)

2. Notice. Mr. Sanjeev Narula, the learned CGSC accepts notice for Respondent No.1 and Mr. Harpreet Singh, Sr. Standing Counsel accepts notice for Respondent No.2. Reply be filed on or before 17^th October, 2017 and rejoinder, if any, be filed before the next of hearing.

3. Irrespective of the reply being filed, the Respondents will be ready on the next date with instructions specific to the interim reliefs sought by the Petitioners.

4. List on 7^th November 2017.

5. Order Dasti under the signature of the Court Master.