Liaisoning services by branch of foreign firm to attract GST: Karnataka AAR

The order came in a case related to business and promotion activities by the Bangalore-based branch office of a company, the head office of which is incorporated in Germany

Liaisoning services by the branch office (BO) of a foreign entity in India will draw the goods and services tax (GST), even if transactions between them are without consideration, the Karnataka-based Authority for Advance Rulings (AAR) has said.

The order came in a case related to business and promotion activities by the Bengaluru-based BO of a head office (HO) incorporated in Germany.

Harpreet Singh, partner at KPMG, said the authority referred to the concept of related persons as provided in Section 15 of the Central GST Act to conclude that the applicant and its head office are deemed to be related persons.

Therefore,