Import of Service under GST

All about Import of Service Under GST:

Import of Services under Service Tax Law is subject to service tax under reverse charge mechanism. Under GST, not much has changed.

Some Significant Points are explained below:

Definition

Import of services has specifically been defined under IGST Act 2017 and refers to supply of any service where the supplier is located outside India, the recipient is located in India.

Levy

As per the Provisions Import of service under Consideration of whether or not in the course or furtherance of business, shall be considered as a supply.

(In General, import of services without consideration shall not be considered as supply).

in view of the provisions contained in section 14 of the IGST Act 2017, Import of free services from Google and Facebook by all of us, without any consideration, are not considered as supply.

As per the provisions contained in section 21 of the IGST Act, 2017, all imports of services made on or after the appointed day will be liable to integrated tax regardless of whether the transactions for such import of services had been initiated before the appointed day.

Lets take an Example says : Suppose a supply of service for Rs.1 cr. was initiated prior to the introduction of GST, a payment of Rs. 30 lacs has already been made to the supplier and service tax has also been paid on the same, integrated tax shall have to be paid on the balance amount Rs. 70 Lacs.

Was this article helpful?

Related Articles