TaxTMI 
TaxTMI 
An registered STP unit having only Exports without IGST (LUT))having a permanent place of business within india has entered into a transaction with its parent company registered outside india. The associated enterprise has provided management support services to the said STP unit. The date on which the book entry was made is on March 31,2020. Is this transaction liable for RCM under import of services payable in cash. If liable also let us know whether credit against the same can be availed since this pertains to financial year 19-20.
Reverse Charge Mechanisam
10 Nov 2020 
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Reverse charge on imported management services triggers tax liability and time-limited input tax credit eligibility.
Imported management support from a foreign parent to an STP unit with a business presence in India is an inter-state import of services liable to IGST under the reverse charge mechanism. Eligibility to claim input tax credit depends on when the RCM tax is paid: if payment and return-filing deadlines for the relevant period have passed, ITC may be time-barred; if RCM is paid on or after the stated consequential date, ITC can be claimed within the prescribed GSTR-3B filing window for the relevant period. (AI Summary)
Imported management support from a foreign parent to an STP unit with a business presence in India is an inter-state import of services liable to IGST under the reverse charge mechanism. Eligibility to claim input tax credit depends on when the RCM tax is paid: if payment and return-filing deadlines for the relevant period have passed, ITC may be time-barred; if RCM is paid on or after the stated consequential date, ITC can be claimed within the prescribed GSTR-3B filing window for the relevant period. (AI Summary)