The services provided by a client of ours are wholly exempt and he is not registered under the CGST Act by virtue of section 23. He now proposes to import certain services from abroad for his business purposes. Is he required to pay IGST under reverse charge and if so, liable to get himself registered? Section 24, which provides for compulsory registration refers only to section 22 and not 23.
Would there be any difference if the service being imported is OIADB access or retrieval service?
Thank you for your guidance.
Educational Institutions May Need GST Registration for Reverse Charge on Imports Despite Exemption, Per Finance Act 2023 Amendments. A participant in a discussion forum queries whether an educational institution, exempt from GST and unregistered under the CGST Act, must register and pay IGST under reverse charge when importing services like course content and business consultancy. Responses highlight that the Finance Act 2023 amended Section 23 to override Sections 22 and 24, suggesting no compulsory registration for exempt services. However, differing views suggest that Section 24 may require registration for reverse charge payments. The consensus indicates that registration is necessary to pay GST under reverse charge, as unregistered entities cannot make such payments. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
