RCM on import of services

[chetan jadhav]

Respected Experts,

Company is engaged in a business of providing coaching services with respect to courses/degrees offered by foreign institute.

facts are as under -

1. Providing coaching for courses offered by foreign institute.

2. For the coaching, It charge fees including GST.

3. One of the aspects of business is, students need to enroll with foreign institute for which they need to pay admission and other fees.

4. For the sake a convenience, company collects the admission/other fees (without GST) from individual students and make the lump sump payment to foreign institute as per the deadlines. once course is completed, foreign institute offers the degree or completion certificate to students. each student has their own login credentials.

5. while making a payment to foreign institute, banks insist for 15CA/CB and hence the same is provided.

Now my query is regarding RCM on admission/other fees payable to foreign institute.

My understanding with respect to GST -

1. Since foreign institutes are not covered under exemption, fees charged by them may get covered under import of services.

2. Import of services is liable for RCM even for personal transactions.

3. Company is only acting as pure agent (collecting the fees and remitting abroad). further, services are actually rendered by foreign institute to students (as degree is offered to students)

4. Due to point no 3 above, company is not liable to pay GST under RCM. students are liable in their personal capacity as registration under GST is mandatory in case of liability under RCM.

Query -

1. Will department insist company to pay GST under RCM

2. if company makes a payment under RCM, will it get the input tax credit for RCM paid.

3. weather my understanding of GST liability on individual student is correct.

Kindly through some light on the provisions of the law.

AI Summary

Coaching Service Provider Not Liable for GST Under RCM When Acting as Pure Agent for Foreign Institute Fees A company providing coaching services for courses offered by a foreign institute queries about the applicability of the Reverse Charge Mechanism (RCM) under GST for admission fees collected from students and paid to the foreign institute. The company acts as a pure agent, collecting and remitting fees without GST. The concern is whether the company is liable for GST under RCM or if the liability falls on the students. An expert clarifies that if the company meets the pure agent conditions, it is not liable for GST under RCM, and students may not be liable as non-taxable online recipients.