Is GST applicable on taking consultancy from a company based outside India?

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Quick Summary

If your Indian proprietorship firm receives consultancy from a company outside India, GST is generally applicable under the Reverse Charge Mechanism (RCM). You'll need to register for GST, issue a self-invoice, and pay 18% GST directly to the government. While a refund on this specific GST payment isn't typically available, you can claim Input Tax Credit (ITC) on the GST paid under RCM, effectively offsetting your GST liability on future supplies.

MUSTAFA KANORWALA

MUSTAFA KANORWALA (Querist)

06 October 2021 Dear,

Is GST applicable for my self proprietorship firm as I have taken consultancy from a Education consultancy firm outside India? How much %GST is applicable and how do I pay it? The invoice sent to me is for eg 1000$ from outside India, what would be the GST applicable and other taxes for me to pay this to the company?

Can I get a refund on this GST in India? If so, how can I get a refund back?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 October 2021 GST payable under RCM for this service if you are a GST registraterd person. Claim ITC on the GST paid under RCM.

Udaya Chandran

Udaya Chandran (Expert)

06 October 2021 Your service under RCM. You need to get yourself registered and issue self invoice/payment voucher and pay GST under RCM to the government directly. GST @ 18% shall be applicable. Refund is not available. However, if you continue to receive such service and be liable to pay GST, you can avail ITC on RCM paid.

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