M/s TAKKO HOLDING GMBH
GST – Tamil Nadu AAR – Whether liaison office (Also known as a representative office) is liable to pay GST – Whether a liaison office is required to be registered under GST Act – Whether the Activities of a liaison office amount to the supply of services.
HELD – the applicant/ liaison office is working as per the terms and conditions stipulated by RBI and the reimbursement of expenses and salary of employees is paid by Holding company to the liaison office. No consideration for any activity is being charged by the liaison office and the liaison office does not have any business activities of its own as specified by RBI conditions.
The liaison activities being undertaken by the applicant when strictly in line with condition specified by RBI permission letter do not amount to supply under CGST and SGST Act – the Applicant is not liable to pay CGST, SGST or IGST, as applicable – the Applicant is not required to get itself Registered under GST for the liaison activities.