Non-resident vendor - gst rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2017 Hello Everyone!

My query is as under;

A foreign company giving services of tour operator in Dubai, to its Indian client,

Whether foreign company requires registration under GST u/s 24(v) of CGST Act, 2017 ?

Whether Indian client receiving services from foreign company required to pay GST on RCM basis ?

Kindly reply.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 August 2017 Foreign Company does not require any GST registration. Indian company receiving such services needs to pay IGST under Reverse Charge Mechanism.

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2017 Whether Input for RCM will be available to Indian Company, considering the fact that the Indian Company's main objective is "Tour Operator". ?
Correct me if I am wrong
I guess with 5% RCM payment - Input is not allowed, while with payment of 12% RCM input would be available.

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