Reetu | Aug 16, 2023 |
Services including common employees provided to Head Office by Branch attract GST: AAR
The Authority for Advance Ruling (AAR Tamilnadu) in the matter of Profisolutions Private Limited has ruled out that Services including common employees provided to Head Office by Branch attract GST.
The Applicant registered under the Companies Act 2013 in the State of Karnataka, have branch office at Chennai and the branch office is registered in the State of Tamil Nadu under GST Act for providing engineering services for industrial and manufacturing projects.
The Question and Ruling are as follows:
Whether providing service by branch office in one State to head office in another State through employees who are, common to the company constitute supply of service in terms of Section 7 the Act, if so, whether such services attract GST liability?
Ruling
Services, including the services of common employees of a person, provided by branch office to head office and vice versa, each having separate GST registration, will attract GST liability under respective Acts, viz IGST Act, 2017 or CGST Act, 2017 and SGST Act, 201 7 or UTGST Act, 2017.
For Official Ruling Download PDF Given Below:
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