18% GST To Be Levied on Head Office Operations in Other State

Head-Office-Operations-attract-gst

The GST Council will charge tax on inter-state services between offices of a single entity. That means if your company is hiring personnel or preparing payrolls for offices located in other states they will have to pay a GST on such supplies. The order for the same was recently passed by the Karnataka Authority of Advance Rulings.

The order says that companies that have offices in multiple states will have to raise tax invoices and pay GST even for service functions performed between in-house offices. In most cases, the receiving party can claim an input tax credit paid on such services, however, it is expected to increase the compliance cost and time for the companies that have offices in different states. Read More

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