GST ON cloud services under RCM

Is there any value defined below which the recipient don't have to pay. The value of these bills is quite low such as 3-4K a month.

Any reverts on this??

It looks like tax needs to be paid under RCM by recipient of services for import of services (Server hosting charges paid). Now the question is how to show this in GSTR 1. Supplier (being Non resident) does not have GST number in India and does not file GST returns. How can receiver show this in his GSTR 1 and GSTR 3B. 

GST under RCM applies when you import services from outside India, which includes cloud services from AWS, Google Cloud, Azure, or any foreign OIDAR service provider.

Here is how it works in practice:

Rate: 18% IGST on the invoice amount (converted to INR at the date of payment or the RBI reference rate for the month).

What you need to do each month:
- Raise a self-invoice in your own name for the cloud service payment.
- Report it in GSTR-1 under Table 4B (outward supplies by a registered taxpayer where tax is paid under RCM).
- Pay the IGST through your Electronic Cash Ledger via your GSTR-3B filing.
- Claim this IGST as ITC in the same or subsequent GSTR-3B filing (under Table 4A(3) - inward supplies under RCM).

For registered businesses, the net GST cost is usually nil because the RCM paid gets fully offset as ITC. The main obligation is the compliance: raise the self-invoice, report, pay, and claim.

Composition dealers cannot claim ITC on RCM and the cost sticks.

This [GST on import of services RCM guide](https://taxgarden.in/blog/gst-on-import-of-services-rcm-india-2026) covers the self-invoice format and the GSTR-3B entry for cloud and SaaS services specifically.

Correction on reporting: imported cloud/hosting services are not shown in GSTR-1 (Table 4B is for a supplier's own RCM outward supplies) – pay the IGST in GSTR-3B Table 3.1(d) and claim ITC in Table 4A(2) 'Import of services', not 4A(3); there is no minimum value, so even ₹3–4k monthly bills attract RCM.