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Can anyone simplify this gst related statement for me. ?

Others 192 views 3 replies

Raghu

Propriter

34 Points Posted on 07 November 2017

I was reading about "Who is Liable to get Registered under GST? " and there was a point that reads as

"Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person"

I wonder why a person staying outside india and giving service to a person in India , need to register for GST, because he is not a citizen ..?

Or may be i don;t fully understand the para, so can someone simplify this for me. ?

Thanks & Regards

Replies (3)

DHANANJAYA.R

SENIOR ACCOUNTANT

45 Points Posted on 08 November 2017

service receiver should be registered in India under GST.

Meenu

Article Assistant

93 Points Posted on 08 November 2017

If a registered person in India is receiving OIDAR services from a person located outside India, then the registered recipient should pay GST on such services on RCM basis as the supplier is a foreigner who is unregistered
In case if the OIDAR services are received by an unregistered person, then the foreign supplier has to take one time registration (in Form Reg 10) in India for the purpose of paying GST. Had this arrangement not been made, then government would lose revenue on such transactions and hence this provision.