German GmbH + Indian Branch VAT-GST Interaction CA, EU VAT + Indian GST + reverse charge + export of services.

• German VAT (Umsatzsteuer): 19% standard rate; 7% reduced rate for specific items.
• Services from non-EU (e.g., Indian branch providing services to German GmbH): typically reverse charge mechanism (RCM) - German GmbH accounts for VAT on reverse charge.
• Services from Germany to non-EU customer (B2B): typically zero-rated / out of scope for German VAT.
• Specific place of supply rules under EU VAT Directive (Articles 44-45).
• Intra-EU vs non-EU specific treatment.

• Indian GST (CGST + SGST + IGST): 18% standard rate on services; 5% / 12% / 28% specific rates.
• Export of services (Section 2(6) IGST Act): zero-rated with LUT / bond or with refund of specific unutilised ITC.
• Place of supply rules (Section 13 IGST Act): specific for cross-border service determination.
• Services provided by Indian branch to German GmbH (immediate parent): specific analysis - is it export of service (zero-rated) or specific intra-establishment transaction?
• Section 2(6) IGST export conditions: supplier in India, recipient outside India, place of supply outside India, consideration in convertible foreign exchange, supplier + recipient NOT merely establishments of distinct persons under same person.

• Indian branch + German GmbH head office = typically treated as same legal person.
• Services between branch and HO: specific Section 2(17) IGST Schedule I 'supply even without consideration' trigger for related-party services.
• CBIC Circular 161/17/2021 clarified: services provided by Indian branch to foreign HO are export of services if specific conditions met.
• Zero-rated export status subject to specific documentation.
• Alternative: services treated as not supply (intra-establishment) - no GST.
• Specific case-law + CBIC clarifications continue to evolve.

• Indian GST Section 13: services exported if place of supply outside India.
• Default (Section 13(2)): place of supply = location of recipient.
• Specific exceptions: real estate (location of property), personal services (location of performance), transportation (specific tests), specific OIDAR / telecommunication rules.
• German GmbH recipient based in Germany + Indian branch supplier = default place of supply Germany + export of services from India + zero-rated.
• German VAT reverse charge on recipient side (German GmbH): 19% VAT accounted + recoverable if specific input credit available.

• Indian branch provides software development to German GmbH: default export of services (zero-rated) from India + German VAT reverse charge recoverable + no cascading tax.
• Indian branch provides consultancy to German GmbH: similar export of services treatment subject to specific conditions.
• Indian branch provides specific services to German GmbH's EU customers: specific analysis - who is contractual recipient + specific flow-through structure.
• Indian branch procures from Indian vendors to supply to German HO: input credit chain + specific export documentation.

• Indian GST structure + export of services optimisation + LUT / bond filing.
• Place of supply analysis + specific documentation.
• GSTR-1 + 3B + 9 compliance for Indian branch.
• Input tax credit optimisation + specific refund claims.
• Specific CBIC clarification compliance for intra-establishment.
• German VAT reverse charge analysis + specific recovery (via German partner).
• Transfer pricing: Form 3CEB mandatory for Indian branch + German HO transactions (both Indian tax authorities + specific jurisdictional review).
• Co-ordination with German Steuerberater for German VAT + Umsatzsteuer-Voranmeldung + Jahresmeldung.
• Specific EU VAT MOSS / OSS registration if specific scenarios.
• Specific BEPS Pillar 2 impact.

Last updated: 2026-10-25.