TaxTMI 
TaxTMI 
RCM payable on Service received by Indian company related to research & development with foreign company having Joint venture with the foreign company.
RCM payable on Service received related research & Development with Foreign company having Joint venture with the foreign company.
04 Jun 2025 
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Reverse Charge Mechanism applies to imported R&D services, requiring the Indian recipient to self-invoice and pay GST under RCM.
Reverse Charge Mechanism applies where an Indian recipient obtains R&D services from a foreign supplier and the place of supply is in India; a joint venture does not eliminate RCM unless the foreign supplier supplies via a registered establishment or permanent establishment in India. The Indian recipient must self-invoice, pay GST under RCM at the applicable rate, disclose the liability in GST returns, and may claim ITC subject to normal conditions. Sectoral facts and notification-specific rules can change the place-of-supply and RCM applicability and therefore require factual examination. (AI Summary)
Reverse Charge Mechanism applies where an Indian recipient obtains R&D services from a foreign supplier and the place of supply is in India; a joint venture does not eliminate RCM unless the foreign supplier supplies via a registered establishment or permanent establishment in India. The Indian recipient must self-invoice, pay GST under RCM at the applicable rate, disclose the liability in GST returns, and may claim ITC subject to normal conditions. Sectoral facts and notification-specific rules can change the place-of-supply and RCM applicability and therefore require factual examination. (AI Summary)