APPLICABILTY OF THE IGST ON IMPORT OF SOFTWARE

[GVSSR shankar]

Dear Sir,

if the Importer got the Software through cloud and the same is claimed in followed shipment invoice. since it is non physical item at the time of the import. what is the GST Notification for such item to claim as the imported item.

[Alkesh Jani]

Sir,

In this regards, my point of view is that Software is falling under HSN Code 997331. It is import of Service. However, No Bill of Entry can be filed in case of services, You are required to pay IGST under RCM basis, as per Sl.No.1 of Notification No.10/2017-IT (Rate) dated 28.06.2017 (as amended from time to time). You can show this under RCM in GSTR-1.

As you are eligible of ITC you can show the same at Table 4 (A) (2) of GSTR-3B.

Our experts may correct me if mistaken.

Thanks,

With regards

[KASTURI SETHI]

I support the views of Sh.Alkesh Jani Ji.

[DR.MARIAPPAN GOVINDARAJAN]

Shri Alkesh is correct in his advice.

AI Summary

IGST on imported software: cloud-based supplies treated as import of service and taxable under reverse charge mechanism. Cloud-delivered software is treated as an import of service (HSN 997331) and is taxable under IGST on a reverse charge basis as per Notification No.10/2017-IT (Rate). No bill of entry is required for services; the recipient must discharge tax under reverse charge and report the supply in GSTR-1. Where eligible, the recipient may claim input tax credit for the IGST paid and disclose it in the ITC section of the monthly return.