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CA Intermediate · Taxation · Charge of GST

Anand, a proprietor registered in Pune, buys a taxable service for his business from a registered Indian supplier. Separately, he imports a taxable service from a foreign vendor, for which the reverse charge applies. Which statement about the charge of GST on the imported service is correct?

IGST is levied on the imported service, and Anand, as the recipient, pays it under reverse charge. Import of services is deemed an inter-State supply under the IGST Act, so CGST and SGST do not apply, and the supplier being outside India gives no exemption.

  1. AIGST is levied on the imported service and Anand pays it under reverse charge as the recipientCorrect
  2. BCGST and SGST are levied because Anand is located in Maharashtra
  3. CNo GST is levied because the supplier is outside India
  4. DGST is levied only if the value exceeds Rs 20 lakh

Explanation

Import of service is treated as an inter-State supply under the IGST Act, so IGST is charged. Where reverse charge applies, the Indian recipient pays the tax. CGST/SGST do not apply to imports, and there is no exemption merely because the supplier is abroad.

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