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GST on intellectual property rights of foreign entity used in india

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This query is : Resolved

Piyush (Querist)
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14 May 2025 Foreign company owns an IP for a event . An Indian company is taking the IP for 1 year at an agreed sum to conduct concert and events at various places in India using the foreign brand IP.
Also the IP fees is partly fixed and partly share of revenue generated from these events.
The foreign company does not have any place of business in India. Is GST applicable on the same ?
and does the Indian company has to charge GST under RCM and use it as credit later on ?
And at what rate GST to be charged if applicable ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 May 2025 It will fall under import of service.
Under GST, the import of services is considered a supply and is subject to tax. The recipient in India is liable to pay GST under the reverse charge mechanism. This ensures that imported services are taxed similarly to domestic services, maintaining tax parity and compliance within the GST framework.

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