• GST

We are a company trading in Singapore and providing a B2B service to another company in Singapore (Installation of audio visual equipment) however the work is being carried out in India. What GST applies? Singapore or India?

Also if India, is there a registration threshold or do all non resident companies have to register for GST? and what rate applies?
Asked 4 months ago in GST

Hi Sir

As appears from your query that you are giving services from India to your B2B customer situated in Singapore. As far as Installation services are concerned the place of supply is in India and you need to pay GST in India.

 

We are not sure about Singapore GST but as per the basic structure of GST if you are billing from Singapore then surely GST will be applicable. Better you form a company in India and bill directly from here to your client to avoid dual GST. 

In India, there is a registration threshold of INR 2 million for services. However, if you are taking NRTP (Non-resident taxable person registration) then no threshold limit applies.

In India, the GST rate is 18%.

 

Furthermore, to add up since this transaction is a bit complex in nature better if you take the written advisory from a professional so that your risks are limited. Also, cross-border transactions especially between related parties also are to be valued carefully so that there is no short payment of taxes.

 

Trust this meets your clarifes,

 

In case of any concern feel free to revert.

 

 

 

Brijendra Tripathi
CA, Lucknow
143 Answers
3 Consultations

5.0 on 5.0

Hi

 

If the services are actually performed in India, the place of supply shall be in India and thus, this transaction will come into the ambit of GST in India.

Lakshita Bhandari
CA, Mumbai
5475 Answers
551 Consultations

5.0 on 5.0

Extract of Section 13 of IGST Act for your reference:

 

(3) The place of supply of the following services shall be the location where the
services are actually performed, namely:—


(a) services supplied in respect of goods which are required to be made
physically available by the recipient of services to the supplier of services, or to a
person acting on behalf of the supplier of services in order to provide the services:

Provided that when such services are provided from a remote location by way
of electronic means, the place of supply shall be the location where goods are situated
at the time of supply of services:


Provided further that nothing contained in this clause shall apply in the case
of services supplied in respect of goods which are temporarily imported into India
for repairs and are exported after repairs without being put to any other use in India,
than that which is required for such repairs;

Lakshita Bhandari
CA, Mumbai
5475 Answers
551 Consultations

5.0 on 5.0

- GST is payable @18% by the recipient company in Singapore. For this transaction, recipient company will be treated as non-resident and registration will be granted under non-resident category. Registration will be for ninety days only. Company has to obtain registration and deposit entire tax before undertaking transaction. Raise Invoice after payment of tax by the recipient company along with declaration of payment of taxes. Company has to file all GST returns during the period of registration.

 

Non - resident needs to be registered compulsory. There is no threshold limit for non-resident.

 

- For precise understanding, please take phone consultation.

Vivek Kumar Arora
CA, Delhi
4079 Answers
346 Consultations

5.0 on 5.0

Sir, the transaction is a bit complex. Indian GST will be applicable for sure as the Place of supply as per Indian GST law is in India.

 

As I suggested earlier, it would be better, in this case, to get registered in India and bill directly from India to avoid double taxation (Singapore GST + Indian GST).

 

One more thing generally the services rendered outside India are Zero-rated (i.e. ultimately GST incidence is Zero), but in this case that is not happening. Therefore, you need to enter into such transactions more judiciously.

 

Trust this clarifies.

 

Thanks

Brijendra Tripathi
CA, Lucknow
143 Answers
3 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

As place of supply is in India, GST will be applicable in India. The rate shall be 18%.

 

In India, the threshold limit for the same is 20 lakh.

 

Once you are registered, you are bound to comply with all the provisions of GST Rules, Acts and notifications.

 

We may assist you in entire GST compliances.

 

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
5084 Answers
157 Consultations

5.0 on 5.0

There is a threshold of 20 lakh in India.

We can discuss about same in detail over phone consultation and we can assist you in all GST compliance.

Thank you

Naman Maloo
CA, Jaipur
3798 Answers
45 Consultations

5.0 on 5.0

Hi

In India GST will be applicable as place of supply is in india . Rate of gst shall be 18%

There is no threshold limit for registration. A non-resident taxable person cannot exercise the option to pay tax under composition levy

Karishma Chhajer
CA, Jodhpur
2391 Answers
22 Consultations

5.0 on 5.0

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