GST on Purchase of Services (Software License & Web Hosting Server) from Outside India

This query is : Resolved

Vikram (Querist)
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10 November 2021 Hi,

How to pay GST on purchases made for software licenses from vendors like Cpanel, Digitalocean who bill monthly in USD and we pay by credit card. Can you please also help with accounting entries to be done as these invoices are in USD, so how to calculate GST and under which category they will come. Also how to claim input credit for the same.?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 November 2021 Pay GST under RCM considering it as import of service claim ITC after RCM payment.
Adopt the same exchange rate for which payment is made.

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