import of service

[SHARAD ANADA]

IF A REGISTERED TAXABLE PERSON MAKE PAYMENT TO FOREIGN MAGAZINE FOR PUBLICATION OF HIS INDIAN PRODUCT ADVERTISEMENT OVER THERE CAN IT BE CONSIDERED AS IMPORT OF SERVICE AND LIABLE TO RCM ?

[KASTURI SETHI]

Dear Sh.Sharad Anada Ji,

In my view, it is import of service and RCM is applicable as this activity is covered under Section 2(11) of IGST Act. Place of supply is covered under Section 13 (2) and RCM is applicable at Serial No. 1 of Notification No.10/17-IT (Rate) dated 28.6.17 as amended.

[Ganeshan Kalyani]

Subscription of foreign magazine is an import of service. GST is payable under reverse charge basis.

AI Summary

Import of service: reverse charge applies where an Indian recipient pays a foreign magazine for advertising services. Payment by an Indian registered taxable person to a foreign magazine for advertising is treated as import of service under the IGST Act, with GST payable by the Indian recipient under the reverse charge mechanism, pursuant to place of supply rules and the relevant reverse charge notification.