A division bench of Delhi High Court comprising Justice S. Muralidhar and Justice Prathibha M. Singh has admitted petition challenging Integrated Goods and Services Tax (IGST) on Banking Services provided to its head office situated in Singapore.
The petition filed by DBS Bank through Advocate Abhishek A Rastogi and Advocate Rashmi Deshpande from Khaitan & Co.
The petition has challenged constitutional validity of the certain provisions of Section 7(5)(a) of the IGST Act to levy IGST on Banking Services provided to its head office situated abroad as the place of supply of services is outside India.
The Petitioner pointed out that there was no levy of Service Tax on such transactions under the erstwhile regime but the provision under Section 7(5)(a) of the IGST Act deems such transactions to be an inter-state supply and hence is violative of Article 14 of the Constitution of India.
The case posted for further hearing on November 7.
Read the full text of the Order below.
