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Import of services

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Shivani

Learner

1882 Points Posted on 19 September 2018

Hi friends

i have often heard that IGST is applicable on import of services under reverse charge mechanism.

However i feel that unlike service tax where import of services were specifically mentioned as one of the items on which reverse charge is applicable, the notification under GST does not mention import of services at all in the list of specified services on which reverse charge is applicable.

Then how can we say that reverse charge is applicable on import of services.

If we say that reverse charge is applicable under section 5(4) of the IGST Act as purchase of services from unregistered person, then that section has been held in abeyance till 30-sep-18.

i need to know on what basis are we saying that import of services fall under rcm.

please give relevant section, rule or notification in support of ur answer.

regards

shivani

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Posted on 19 September 2018

Now lets begin from Section 7 IGST Act
4] Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.
So the IGST is applicable & As per Notification 10/2017 IGST Act : the whole of integrated tax leviable under section 5 (3)of the said Integrated Goods
and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services .
Under S.no. 1 in aforesaid notification : Any Services supplied by person located in Non Taxable Territory to person located in Taxable Territory is under RCM

Hence in case of import of services RCM is applicable .