“There are several other companies which are facing similar issues, where an invoice has been issued. Hence, the value as per such self-invoice should be considered for a GST demand in case any,” said Vivek Jalan, partner with Tax Connect Advisory. This principle has been extended under GST, where even services provided without consideration by foreign entities to related Indian companies are considered a supply. As a result, the Indian companies involved are liable to pay GST under the RCM. However, the question which needs further answer is what happens in a case when invoices are issued by foreign subsidiaries.

Source: Indian Express August 05, 2024 03:26 UTC