Import of Services under GST means supply of service, where:-
i) Supplier located outside India.
ii) Recipient located in India.
iii) Place of supply In India
Transaction compiling all the above three conditions will constitute import of service.
Scope of Supply: As per section 7(1)(b) import of service is specifically included in scope of supply. Following is the extract of section 7(1)(b):-
(b) Import of services for a consideration whether or not in the course or furtherance of business;
Hence every transaction of import of service whether by a business person or individual or any other person for business purpose or personal use is always be a supply.
Supply without consideration: As per Clause 4 of Schedule-I of CGST act, Import of service without consideration is also included in the scope of supply. Extract of the same is as follows:
4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.
Hence import of service without any consideration from related person in the course of business is also a supply.
Inter-state or Intra-state: As per section 7(4) of IGST act, supply of service imported into the territory of India is inter-state supply. Extract of the provision is as follows:
(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.
Hence every transaction of import of service is inter-state supply
Levy: As per section 5(1) of IGST act, IGST shall be levied on all Inter-state supplies of goods or services on value at such rate as may be notified.
Since every import of Service is inter-state supply hence IGST shall be levied on every import of service.
Taxation of import of service for personal use:
As per section 7 of CGST act, 2017 import of service not for business purpose is also a supply and GST shall be charged such supply as per section 9 of CGST act, 2017. Hence every import of service for personal use is also leviable to GST.
There are exemptions related to import of service for personal use is as follows:
| S.No. | Chapter | Description | Tax Rate |
| 10 | Chapter 99 | Services received from a provider of service located in a non- taxable territory by –
(a) the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other a non than commerce, industry or any other business or profession; (b) an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or (c) a person located in non-taxable territory: Provided that the exemption shall not apply to – (i) Online information and database access or retrieval services received by persons specified in entry (a) or entry (b); or (ii) Services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India received by persons specified in the entry. |
NIL |
Hence all the import of service by a person for non-business puspose is exempt from GST except the follows:
i). Import of service of Online Information and database access or retrieval services.
ii).Transportation of goods by vessel from outside India to customs station of clearance in India.
Author Bio
If We take consulting services for marketing and research from europe person and also for europ country and other country except india and we do the payment of supplier in euro then we are liable to pay IGST under RCM or not . We are not take any service from this person in india he or she work from europe and help for outside india only and he is also a resident of europe
If the word is ” (c) a person located in a non-taxable territory ” the conclusion that is drawn above is will Also change, Right( As it is exempted for the persons which are in non- taxable area ).
Hence all the import of service by a person for non-business puspose is exempt from GST except the follows:
i). Import of service of Online Information and database access or retrieval services.
ii).Transportation of goods by vessel from outside India to customs station of clearance in India.
Hi Robin!
Though the article is quite insightful.
But i came across an error in Exemptions under entry 10 of Ntfn-2/2017 of IGST Act,2017 mentioned by you in last
Which is- “(c) a person located in -taxable territory”
Whereas correct line is “(c) a person located in a non-taxable territory:”
Which can be misleading for a few!
Request you to please rectify it, if possible.
Hope you don’t mind it.
Thankyou 🙂
Agreed and corrected. Thanks for bringing this typographical error to our notice.
It is very helpful.