Section 5(3) of IGST-RCM on Import of Service

Last updated at April 16, 2024 by

Import of Service means taking service from Outside Country
In this case, Foreign Service Provider provides Service to us
In this case this Foreign Party will not charge GST (as he has no idea of GST)
We will deposit GST directly to the government

import of Service.jpg

Note
  1. IGST is applicable in this case and not CGST SGST
  2. Reverse Charge is applicable on Import of Service (not Import of Goods)
Example 1
Consultancy Service taken from Alex Ltd USA for 100$
Exchange Rate 70 Rs/$
In this case, we will pay Rs 7000 to Alex ($100*70)
Also we will deposit 7000*18%=1260 IGST to Government as Reverse Charge
 
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Transcript

Section 5(3) of IGST RCM on Import of Service IMPORT OF SERVICE it means service in which Service Provider is located Outside India Service Receiver is located in India Place of Supply is India Any Service Service Provider Outside India Service Receiver in India Note Rate of Tax in This Case will depend upon Service Always IGST Will be applicable in this Case Amount will be normally charged in Dollars, it has to be converted into Rupees Deposits GST t eachoo.com

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.