GST on AI subscription purchased from USA

This query is : Resolved

Nikhil Sharma (Querist)
Follow

08 June 2026 Dear Experts,
A client of mine, purchase the AI subscription from USA and he than resell that subscription to others foreign companies, but payment is made for purchase from india.

Does this transaction qualify as import of service and export of service,

Also on purchase USA vendor have charged 18% on Account of India GST, but in invoice they haven't mentioned Indian GST not even HSN and invoice is in USD dollars.

My doubt is, since it is import of service qualify for RCM, if they charged 18% GST on Account of india GST, though vendor Indian GST no. not mentioned nor we would get this invoice updated in our 2B, can we still claim GST or still we need to pay more 18% GST under RCM

Please guide on this...

Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

09 June 2026 * Purchase from USA vendor: Normally treated as Import of Service → IGST payable under RCM.
* 18% charged by vendor: Verify whether the vendor has an Indian GST registration.
* No GSTIN / no 2B reflection: ITC generally not available on vendor-charged tax.
* Resale to foreign customers: Can qualify as Export of Service if export conditions are fulfilled and payment is received in foreign currency.
* Safer approach: Obtain vendor clarification; otherwise pay IGST under RCM and claim eligible ITC.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now