Liaison offices of foreign entities liable to pay GST: AAR A liaison office set up in India for promoting business of its head office incorporated abroad needs to be registered mandatorily under the Goods & Services Tax (GST), Karnataka’s Authority for Advanced Ruling (AAR) ruled has held.The applicant, Bengaluru-based Liaison Office of German company Fraunhofer-Gesellschaf, moved AAR with three specific queries – whether the activities of a liaison office amount to supply of services, whether it is required to be registered under CGST (Central Goods & Services) Act, 2017 and whether it is liable to pay GST. AAR refrained from commenting on the claim of exemption where the place of supply of service is outside India by virtue of notification issued in 2018. However, it made it clear that valuation norms under the rules need to be resorted for determining tax liability and “assessee is required to be registered compulsorily as per Section 24 of the CGST Act as they are enga...
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