What is Reverse Charge on Import of Services?

When a business in India receives services from a person outside India, the liability to pay GST falls on the recipient of the service under the Reverse Charge Mechanism (RCM).

Startup Example: A startup in Bangalore hires a freelance developer from the UK for a project. The startup receives an invoice without GST. However, the Indian startup is liable to pay IGST on the invoice value directly to the government and can later claim it as Input Tax Credit.

Handling RCM is a key part of our GST services.