According to IGST section 2(11) supply of any service shall be treated as “ Import of services under GST ” when:
- The supplier of service is located outside India
- The recipient of service is located in India
- The place of supply of service is in India
Further establishments of a person in India and outside India shall be treat-ed as establishment of separate persons. Also any person carrying business through branch or agency office in any territory shall be treat-ed
as having an establishment in that territory.
Supply of services in the course of import into the territory of India shall be treat-ed as supply of services. Therefore such import of service under reverse charge system would subject to IGST on reverse charge base system. At the same time the term supply also includes importation of service, whether or not brought for furtherance of business.
Import of services from related person
As per CGST Section 7 schedule I, below activities will be treated as supply from related person even if made without any consideration.
- Supply of services between related persons as specified in section 25, when made in the course or furtherance of business.
- Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.