AAR, Haryana Rules Liaison Office Not Required To Register Under GST

The Authority for Advance Ruling (AAR), Haryana, in an application filed by Wilhelm Fricke SE, has ruled that a Liaison Office (LO) located in India is not required to obtain GST registration and pay GST on reimbursements received from Head Office (HO).

Facts

• Wilhelm Fricke SE (the applicant) is a company incorporated in Germany, and is inter alia, engaged in the development, assembly/production and sale of agriculture machinery and agricultural machinery spare parts;
• The applicant established a LO in India (with the permission of the Reserve Bank of India) which undertakes the following activities:
  • Identification of vendors in India, and liaising and coordinating with them;