Question 27:
An Indian Company is hiring the services of an Event Management Company, who are based at Nepal. Services are taken in Nepal for the event held in Nepal. But payment is made from India. Whether GST would be applicable as import of services considering notification No. 10/2017 and what would be the rate of tax?

Answer

The location of supplier is outside India and place of supply as per Section 13(5) of IGST Act is Nepal because the event is organised in Nepal
 SECTION 13(5) of IGST Act is as follow
(5) The place of supply of services supplied by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place where the event is actually held.
 Now coming to the definition of import of service which is as follow section 2(11) of IGST Act
 (11) ''import of services' means the supply of any service, where''
(i) the supplier of service is located outside India;
(ii) the recipient of service is located in India; and
(iii) the place of supply of service is in India;
Since it is not import of service because clause iii is not fulfilled so no GST will be charged in India (REPLY dt.22-02-2018)