GST on RCM basis for Import of Educational/training services by Un registered person

[Asked by Guest]

Sir/Madam,

Please clarify

An Unregistered person who has taken an online course from experts located outside India, is he liable to pay IGST on RCM basis? The course is not a recorded one.

[Shilpi Jain]

If this is a course received for purpose other than business, profession, etc. No liability under RCM

Hai Mam,

Thanks for the reply,

In Notification no.10/2017 IGST rate, in entry no. 1 it was mentioned under the heading Category of supply of services- Any service supplied by any person who is located in non-taxable territory to any person other than the non-taxable online recipient.

Supplier of Service: Any person located in a non-taxable territory; Recipient of Service: Any person located in the taxable territory other than the non-taxable online recipient.

Based on the above I am of the opinion is that any person other than an un-registered online recipient importing services from outside India needs to pay GST on RCM basis. Please clarify.

[ABHISHEK TRIPATHI]

Dear Sravan Ji,

Category: Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient.

Read With

S. 2(16) “non-taxable online recipient” means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory

............

It would be highly impractical to ask an individual customer to register and pay GST on reverse charge. That is why they are excluded via non-taxable online recipient.

[Shilpi Jain]

if the recipient is a registered person then the liability under RCM will arise. However, your question clearly mentioned it is an unregistered person importing the service.

AI Summary

Reverse charge on imported online services: liability arises for business or registered recipients, not private non-commercial users.
Liability to pay IGST on reverse charge for services supplied from a non-taxable territory depends on whether the recipient falls within the statutory non-taxable online recipient exclusion; individuals receiving online courses for non-commercial purposes are excluded and not liable under RCM, whereas a registered recipient or one receiving the service for business/professional purposes would be liable to pay IGST under reverse charge.