India Customs Agency Issues Circular Clarifying Provisions on Place of Supply for Specified Custodial Services

The Indian Central Board of Indirect Taxes and Customs June 26 posted online Circular No. 220/14/2024-GST, clarifying the GST rules on the place of supply for custodial services, provided by banks to Foreign Portfolio Investors (FPI). The clarification explains: 1) the specific securities that FPIs can invest in; 2) that the place of supply of services supplied by banking companies, financial institutions, or non-banking companies, to account holders, will be the location of the supplier of services; 3) that the main activity carried out by banks as custodians is maintaining account of the securities held by the FPIs; and 4) ...