rcm applicablity for foregin govt fees

[VIPUL JHAVERI]

dear expoerts

pl share your valuable guidacne on rcm applicablity on payment made to foreign govt for product registration

AI Summary

Reverse Charge Mechanism applies to fees paid to foreign governments for product registration under GST rules. A forum participant sought guidance on the applicability of Reverse Charge Mechanism (RCM) under GST for fees paid to foreign governments for product registration. Experts advised that such payments are considered an import of services, making RCM applicable. They clarified that exemptions for government services under Indian law do not extend to foreign governments. The discussion highlighted the difference between fees and taxes, and experts generally agreed that the payment of RCM is necessary to avoid penalties. Suggestions to consider the service as intermediary were dismissed as unfeasible, emphasizing compliance with current interpretations of GST law.