GST Applicabilty on import of Service

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This discussion clarifies GST implications when importing services into India. It explains that if services are performed outside India, GST might not apply under the 'import of service' rules. However, for specific cases like tour operators importing packages for Indian clients, a 5% GST is applicable under forward charge, not reverse charge (RCM).

Sourav Kumar Singh

Sourav Kumar Singh (Querist)
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18 February 2023 We are purchasing services from outside India and the client is located in India (Delhi) and b2b bill has generated against the service we imported but the services are performed outside India. Hence in this case will importer needs to pay Rcm on services.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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18 February 2023 Hi,
can you please elaborate the Nature of Service so that Place of Supply can be ascertain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 February 2023 Service performed outside India hence it will not fall under import of service and GST not applicable.

Sourav Kumar Singh

Sourav Kumar Singh (Querist)
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19 February 2023 I am tour operator i have imported an Honeymoon package of Maldives from outside india for the couple staying in India. Will i need to pay Rcm on importing of services??.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2023 5% GST applicable on such services.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2023 RCM not applicable.
5% GST applicable under forward charge on your bill to your client.

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