Non Resident providing taxable supplies, Goods and Services Tax - GST

[Dilip Sanghvi]

If an individual customer takes immigration services from Canada service provider

Does that Canada service provider has to take Compulsory GST registration under sec 24 as Non Resident Person providing taxable supplies?

Posts / Replies

[KASTURI SETHI]

Yes. Canada Service Provider's representative /authorised signatory should apply for registration in India with tax identification of unique number (for establishing the identity of Canada Service Provider). Peruse Rule 13(1), 13(2), 13(3), 13(4) of CGST Rules, 2017. Also read Rule 8(5) of CGST Rules in this context.

[Dilip Sanghvi]

Thank you sir for you reply.

If canada party does not take registration whether my client who is Indian entity will be at any fault as the department can say that you did to avoid taxes and departnemnt will issue notices to both, India and Canada Entity

[Shilpi Jain]

Further details on the service please. Will it not become an import of service if the Canadian service provider is not in India?

[Dilip Sanghvi]

Three parties are involved 1. India Entity 2. Canada Entity 3 Customer who resides in India and wants to shift to Canada.

Indian entity will source clients who want to shift to canada and will assist them in paper work and other procedures. As india entity does not have licnese to act as Immigration consultant for Canada hence Canada Entity will be doing the rest of the after after India entity gives all the papers to Canada Entity.

Here canada entity is asking to customer who wants to shift to Canada to make payment directly to Canada and India entity will get the commission or fees on which INdia entity will pay GST as intermediary.

For example ,total contract value is 10,000 and comission for INdia entity is 4,000. $10,000 will be sent by customer to canada on which Canada entity will not pay any GST and India eneity will pay GST on its consideration which is $4,000. Now due to this Government will loose GST on $ 6,000. so can the Government as INdia entity to pay GST on $6,000 contending that you did all this avoid GST.

Also the Canada entity is saying that laws of INdia GST does not apply to us we are providing services from CAnada hence Canadian laws apply to us.

Its a long query .Thanks for being supporting if you are reading till now..

[Shilpi Jain]

In this case, if the Indian entity has no contract with the customer then the Indian entity cannot be made liable to pay GST on $10,000.

It will generally have a contract with the Canadian entity for receiving the commission and thereby Indian Govt. will get GST only on $4,000/-

[Amit Agrawal]

Dear Sh Dilip Ji,

Prima-facie, I do not think that Concerned Canadian entity (i.e. Immigration consultant located at Canada) is required to be registered under GST in India. But, I may be wrong as I am not sure I understood the transaction very clearly or relevant legal provisions you are hinting at.

Request you to provide more details of services rendered by that entity as well as relevant provisions under GST Act/s wherein it is felt that said Cannadian entity is required under law to take registration under GST in India.

Thanks