ICU Medicals Inc is supplying credit-granting services to the applicant where the holder of credit-card uses it to buy specified services/goods which fall under the definition of ‘Supply’ under GST, said service is appropriately classifiable under SAC 997113. Importer is liable to pay IGST under Reverse Charge, the applicable rate of IGST is 18%.
Levy of GST— The Applicant has sought Advance Ruling on the following questions:
1. Whether GST is leviable on the reimbursement of expenses from the Subsidiary Company to its Ultimate Holding company located in a foreign territory outside India.
2. In case GST is leviable what is the rate of GST applicable to the said reimbursement of expenses?
it is evident that ICU Medicals Inc., is supplying credit services to the applicant for specific use of its cardholders/employees for travel, accommodation, meals etc. while on travel for business use alone. which fall under the definition of ‘Supply’ under GST. In the case at hand, the service imported by the applicant is one of extension of credit for furtherance of business. On perusal of the Classification of Service, it is seen that the said service is appropriately classifiable under SAC 997113.
Further, Notification 10/2017- Integrated Tax (Rate) dated 28/06/2017 notifies categories of supply of services, supplied by a person, where IGST, shall be paid on reverse charge basis by the recipient of the such services
Held that— The applicant is liable to pay IGST on the Wellsone Commercial Card’ expenses paid by the applicant to its Ultimate Holding company, ICU Medicals Inc. having its place of business in USA. under Reverse Charge basis as per SI. No 1 Notification 10/2017- Integrated Tax (Rate) dated 28.06.2017.
The rate of tax is 18% as per Sl.No.15 of Notification 8/2017 -Integrated Tax (Rate) dated 28.06.2017.