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.

AI Summary

IGST on Cloud-Imported Software: HSN Code 997331 Applies, Reverse Charge Mechanism Required, ITC Claimable in GSTR-3B. An inquiry was raised about the applicability of Integrated Goods and Services Tax (IGST) on software imported via the cloud, which is non-physical at the time of import. It was clarified that such software falls under HSN Code 997331 and is considered an import of service. No Bill of Entry is required for services, but IGST must be paid under the Reverse Charge Mechanism (RCM) as per Notification No.10/2017-IT (Rate). Input Tax Credit (ITC) can be claimed and reported in GSTR-3B. The responses from two other contributors supported this interpretation.