GST ON IMPORT OF SOFTWARE

[CABIJENDERKUMAR BANSAL]

we would like to import software from portugul ,pl note this software will be installed on line ,what r duty ,GST and Other taxes applicable and how to make payments of foreign invoices for soft ware pl advise

[YAGAY andSUN]

Online purchase and installation of software will be treated services, and accordingly GST will be applicable. Form A2 of RBI through you banker (Authorized Dealer) will be submitted along with commercial invoice, PO and CA Certificate for making foreign payments. You would have to inform Customs Department in this regard.

[YAGAY andSUN]

RBI Master Direction

RBI/FED/2016-17/12 FED Master Direction No. 17/2016-17 January 1, 2016 (Updated as on February 02, 2018)

C.7.3. Non-physical Imports

(i) Where imports are made in non-physical form, i.e., software or data through internet / datacom channels and drawings and designs through e-mail / fax, a certificate from a Chartered Accountant that the software / data / drawing/ design has been received by the importer, may be obtained.

(ii) AD Category – I bank should advise importers to keep Customs Authorities informed of the imports made by them under this clause.

[KASTURI SETHI]

Dea Yagay and Sun,

Sir, You have enriched my knowledge also. I have saved your reply as ready recknor on my laptop for future purpose. I ofen receive calls on thiis issue. Thank you very much.

[KASTURI SETHI]

Read 'often' correct word.

[YAGAY andSUN]

Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Yagay. As correctly told by Shri Sethi it would enrich the knowledge of professionals in GST field.

AI Summary

Importing Software from Portugal: GST Applies, Use Form A2 for Payments, Follow RBI Directions for Non-Physical Imports. A user inquired about the applicable duties, GST, and other taxes for importing software from Portugal, which will be installed online, and the process for making foreign payments. The response clarified that such transactions are treated as services subject to GST. It advised submitting Form A2 through an authorized dealer with necessary documentation for foreign payments and informing the Customs Department. Additional guidance referenced RBI directions for non-physical imports, requiring a Chartered Accountant's certificate for receipt confirmation. Participants expressed appreciation for the information, noting its value for professionals dealing with GST.