GST Plus - Get Daily updates,support, whatsapp Group & reply to GST Notices etc.!! Call : 011-411-70713 !!

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


Definition: Import of Services means supply of service, where:-

i) Supplier located outside India.
ii) Recipient located in India.
iii) Place of supply In India.

Transaction compiling all the above three conditions will constitute import of service.

Scope of Supply:

As per section 7(1)(b) import of service is specifically included in scope of supply. Following is the extract of section 7(1)(b):-

(b) Import of services for a consideration whether or not in the course or furtherance of business;

Hence every transaction of import of service whether by a business person or individual or any other person for business purpose or personal use is always be a supply.

Supply without consideration: As per Clause 4 of Schedule-I of CGST act, Import of service without consideration is also included in the scope of supply. Extract of the same is as follows:

4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.

Import of Services under GST - Taxability and Exemption

Hence import of service without any consideration from related person in the course of business is also a supply.

Inter-state or Intra-state: As per section 7(4) of IGST act, supply of service imported into the territory of India is inter-state supply. Extract of the provision is as follows:

(4) Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.

Hence every transaction of import of service is inter-state supply

Levy: As per section 5(1) of IGST act, IGST shall be levied on all Inter-state supplies of goods or services on value at such rate as may be notified.

Since every import of Service is inter-state supply hence IGST shall be levied on every import of service.

Taxation of import of service for personal use:

As per section 7 of CGST act, 2017 import of service not for business purpose is also a supply and GST shall be charged such supply as per section 9 of CGST act, 2017. Hence every import of service for personal use is also leviable to GST.

 

There are exemptions related to import of service for personal use is as follows:

    

S.No.

Chapter

Description

Tax Rate

10

Chapter 99

Services received from a provider of service located in a non- taxable territory by –

(a) the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other a non than commerce, industry or any other business or profession;

(b) an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

(c) a person located in -taxable territory:

Provided that the exemption shall not apply to –

  1. Online information and database access or retrieval services received by persons specified in entry (a) or entry (b); or
  2. Services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India received by persons specified in the entry.

NIL

 

Hence all the import of service by a person for non-business purpose is exempt from GST except the follows:

i) Import of service of Online Information and database access or retrieval services.
ii) Transportation of goods by vessel from outside India to customs station of clearance in India.

"Loved reading this piece by CA Robin Garg?
Join CAclubindia's network for Daily Articles, News Updates, Forum Threads, Judgments, Courses for CA/CS/CMA, Professional Courses and MUCH MORE!"




Tags :



Category GST, Other Articles by - CA Robin Garg 



Comments


update