Case Law Details
In re M/s. Directorate of Skill Development (GST AAR Madhya Pradesh)
If the service is imported for the purpose of business or commerce even by the Govt then exemption would not be available and Govt need to pay GST under Reverse Charge. This can be further substantiated as per Q No 14 of GST Sectorial Series on Government Service.
Question 14: Would services received by Government, a local authority, a governmental authority from a provider of service located outside India be taxable?
Answer: No tax is payable on the services received by the Government / local authority/governmental authority from a provider of service located outside India. However, the exemption is applicable to only those services which are received for the purpose other than commerce, industry or any other business or profession. In other words, if the Government receives such services for the purpose of business or commerce, then tax would apply on the same.
Read Also AAAR: No GST on Service by service provider located in a non-taxable territory for Skill Development project of Govt
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