Non payment of GST under RCM on import of service - purchased through credit cards

Dear All,

A software company has to purchase some software licenses from outside India. What it does is, it is telling their employees to purchase these software licenses through their credit cards and the amount incurred by their employees have been reimbursed to them on time to time basis.

In this case, whether GST under RCM to be paid by the company as the software is being utilized by the company. Please enlighten me!

Replies (2)
Quick Summary
This discussion explores the applicability of GST under Reverse Charge Mechanism (RCM) for software licenses purchased from abroad using employee credit cards and subsequently reimbursed. The key question is whether the company is liable for RCM when employees make these purchases, even if the company ultimately uses the software. Clarification is sought on scenarios where the software is bought in the company's name versus the employee's name.

In whose name software was purchased?

If it was purchased on the company name and used by the company, but employee paid for it - then I think RCM is applicable 

If it was purchased on the employee name and the employee paid for it but the company used it for its business purposes- whether RCM is applicable in this case?

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