Gst on import of service

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
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28 December 2018 XYZ(India) is receiving management consultancy services from group / parent companies for the last one year. However, neither the group / parent companies had issued invoice on XYZ till date nor XYZ had paid any amount to group / parent companies due to some disputes. Is XYZ required to pay GST on it under reverse charge even if payment not made to them being the services received from group / parent companies?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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28 December 2018 Yes , XYZ need to pay GST under RCM .
Schedule 1 of CGST Act 2017 - In case the import of services is made by a taxable person from a related party or from any of his or her establishments outside India in the furtherance of business, it shall be treated as supply & taxable even if such import is made without paying any consideration.