ACCOUNTANT

[rajesh subramanian]

Dear sir,

We are pvt Ltd, 100 % EOU , and hiring consultancy service FROM AN FOREIGN INDIVIDUAL who is having PAN

for this transaction we need to pay GST under RCM?

Please guide us

Rajesh.S

ETAPL - Ph : 9943413496

AI Summary

Private Ltd. Company Must Pay GST Under Reverse Charge for Foreign Consultancy, per Section 5(3) of IGST Act 2017. A private limited company, operating as a 100% Export Oriented Unit (EOU), sought advice on whether they need to pay Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for hiring consultancy services from a foreign individual with a Permanent Account Number (PAN). Responses indicated that GST must be paid under RCM, as per Section 5(3) of the IGST Act, 2017, with no exemptions for EOUs. The service is considered imported, necessitating IGST payment by the company.