Home > GST > Help Center > Import of Goods & ServicesLast Updated: Dec 11th 2023
Guide on Import of Goods and Services
Quick guide on Import of Goods and Services, including treatment, place of supply, ITC on IGST and other frequently asked questions
- Import of goods means bringing goods into India from a place outside India.
- Import of Services means the supply of any service where the supplier of service is located outside India and the recipient and place of supply of service is in India.
This document covers
- Treatment of Imports under GST
- Place of Supply in case of Import of Goods
- Input Tax Credit of IGST
- Quick GST FAQs
1. Treatment of Imports under GST
- Supply of goods imported into the territory of India, till they cross the customs frontiers of India shall be considered as supply of goods in the course of inter state trade or commerce and accordingly IGST will be levied on imported goods.
- Supply of services which are imported into India shall be treated as supply of service in the course of inter-state trade or commerce.
- Importation of services for a consideration whether or not in the course or furtherance of business is treated as a supply under GST. This is the only exception to the condition of supply being in course or furtherance of business.
2. Place of Supply in case of Import of Goods
- The Place of supply in case of import of goods is the place where the importer is located.
For Example: Mr M imports electric kettles from USA for her kitchen store in Hyderabad, Telangana. Mr M is registered in Uttar Pradesh. The Place of supply is Telangana
- The Place of supply of Services in case of either location of supplier or receiver is outside India is governed by Section 13.
3. Input Tax Credit of IGST
The input Tax credit of the IGST and the compensation cess paid at the time of import shall be available to the importer and the same can be utilized by him as input tax credit for payment of taxes on his outward supplies
The input tax credit of compensation cess can only be used for payment of compensation cess. But the Basic customs duty and education cess paid at the time of import shall not be available as input tax credit.
4. Quick GST FAQs
A comprehensive list of frequently asked questions on Import GST Guide
The following conditions need to be satisfied as per the definition of import of services
- The supplier of service is located outside India
- The recipient of service is located in India and
- The place of supply of service is in India.
The various elements involved in a service transaction can be used as proxies to determine the place of supply.
- Location of Service Provider.
- Location of Service Receiver
- Place where the activity takes place / place of performance
- Place where the service is consumed
- Place /Person to which /whom actual benefit follows
Business test is not required in the case of import of services. Import of service is treated as supply even it is not in course of furtherance of business.
The importer is liable to pay IGST under Reverse Charge Mechanism under GST
In case of import of OIDAR services, the supplier located outside India shall be responsible for payment of taxes. For this purpose, the supplier will have to take registration or will have to appoint a person in India for payment of taxes.
The refund application should be filed within 2 years from the end of the financial year in which such claim for refund arises.
The refund application should be filed within 2 years from the date on which return relating to such deemed exports is furnished.
The refund application should be filed as follows
- The refund application should be filed within 2 years from date of receipt of payment in convertible foreign exchange if Supply of Services has completed prior to receipt of such payment.
- The refund application should be filed within 2 years from date of issue of invoice if payment for such service has been received prior to issue of invoice.