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GST ON cloud services under RCM

Lila (Job) (490 Points)

12 September 2023

I am paying usage charges for cloud services (supplier is outside India). Do I need to pay GST on the bill amount under RCM.

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4 Replies

Radhey Shyam Jha (Student) (1567 Points)
Replied 13 September 2023

In India, services mediated by information technology over the internet or an electronic network and with minimal human intervention are taxed @ 18%. These services are officially called Online Information Database Access and Retrieval (OIDAR) services.

If the supplier is outside the taxable territory, and the recipient located in India is registered under GST, then the recipient has to pay GST under RCM.

Lila (Job) (490 Points)
Replied 15 September 2023

Is there any value defined below which the recipient don't have to pay. The value of these bills is quite low such as 3-4K a month.

Lila (Job) (490 Points)
Replied 10 October 2023

Any reverts on this??

Lila (Job) (490 Points)
Replied 10 October 2023

It looks like tax needs to be paid under RCM by recipient of services for import of services (Server hosting charges paid). Now the question is how to show this in GSTR 1. Supplier (being Non resident) does not have GST number in India and does not file GST returns. How can receiver show this in his GSTR 1 and GSTR 3B.