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Does import of hosting services get considered as imports? What's the GST?

Hasan (9 Points)

26 September 2019

Hello

I run a web development LLP in India, we are only starting out and thinking about registering for GST. We need to buy hosting from international companies operating outside India who charge in dollars. Is it considered as importd? How does GST workout in such cases as they don't levy GST on their bills?

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9 Replies

Nimitha Kundanam (Senior Executive Accountant) (250 Points)
Replied 26 September 2019

What we do for our clients is....we charge gst on reverse charge mechanism and claim it next month. please correct if i am wrong....

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 September 2019

Yes... GST applicable as reverse charge basis.
Import of service is taxable under GST as Reverse Charge Mechanism.

Poonamchand Varma ( Student) (204 Points)
Replied 26 September 2019

Hosting Service from international companies like direct web etc is considered as impoert of service under section 7(1)(b) and the GST is levies on it on reverse charge basis under section 9. In your case IGST is to be paid on RCM basis and you can availed the ITC in the next month.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 September 2019

ITC can be avail in the same month...

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 September 2019

Yes the ITC can avail in the same month

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Hasan (9 Points)
Replied 26 September 2019

Thank you everyone for such quick responses. So basically to import hosting services I'll have to register my LLP for GST and get an IE code. Is that it? Do I have to do anything else?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 September 2019

IE code is not mandatory in your case

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Hasan (9 Points)
Replied 27 September 2019

I also have to develop and export websites to other countries. Do I need an IE code then? What are the formalities I need to complete?

Binu Mathew (Student) (22 Points)
Replied 17 December 2021

Hi all,

Our client have similar business like of Hasan. Here, few of the international suppliers have registered for GST as non-resident, and as we have given our GSTIN to them, they are not collecting GST on our invoices.

However, other international suppliers have not taken GST registration in India.

So, technically, we have two set of international suppliers Registered and Non- Registered.

Which imports are to be shown in our GST Returns and how to show ?

Thanks in advance