Import of service query

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This query is : Resolved

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This discussion clarifies the tax implications of importing services for business purposes. It confirms that customs duty is not payable on imported services. Instead, IGST is payable to the GST department under the Reverse Charge Mechanism (RCM). Importantly, businesses can claim the IGST paid under RCM as Input Tax Credit (ITC) in the same month, provided their outward supplies are fully taxable.

deepak

deepak (Querist)

22 April 2022
One of our client wants to make a payment of Rs 15 lac to a service provider in foreign territory for translation services availed by him for his business so my query is as follows:

a.) Whether custom duty is payable on above services availed

b.) Whether IGST is to be paid to the custom department or to the GST department

c.) Whether reverse charge payment is applicable on the above services

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 April 2022 a Customs duty not payable on service imports.
b IGST payable under RCM to GST department.
c yes.

deepak

deepak (Querist)

22 April 2022 If pay igst 270000 on import of service for April month gstr 3b. then can we calim same 270000 ITC in April month 3b return under RCM?

deepak

deepak (Querist)

22 April 2022 If pay igst 270000 on import of service for April month gstr 3b. then can we claim same amount of Rs 270000 ITC in April month 3b return under RCM?