Valuation of import of services: invoice value deemed open market value where recipient has full input tax credit. Where an Indian registered person imports services from a related person abroad and the Indian recipient is eligible for full input tax credit, the value declared in the recipient's invoice is deemed the open market value under the second proviso to Rule 28(1) of the CGST Rules. Such imports attract tax under reverse charge and require the recipient to issue a self-invoice. If no invoice is issued by the recipient for services from the foreign affiliate, the recipient's declaration of Nil value may be treated as the open market value under the proviso.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Valuation of import of services: invoice value deemed open market value where recipient has full input tax credit.
Where an Indian registered person imports services from a related person abroad and the Indian recipient is eligible for full input tax credit, the value declared in the recipient's invoice is deemed the open market value under the second proviso to Rule 28(1) of the CGST Rules. Such imports attract tax under reverse charge and require the recipient to issue a self-invoice. If no invoice is issued by the recipient for services from the foreign affiliate, the recipient's declaration of Nil value may be treated as the open market value under the proviso.
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