- CBIC issued Circular No. 210/4/2024-GST to clarify valuation of imported services by related persons eligible for full input tax credit
- Concerns raised by trade and industry regarding tax demands made under an expansive interpretation of Schedule I of the CGST Act
- Import of services by a person from a related person or their establishments outside India considered a supply under Schedule I
- Key clarifications provided by CBIC include rules for valuation of supply between related persons and applicability of full ITC
- Circular references Circular No. 199/11/2023-GST clarifying taxability of services provided by offices in different states
- Principles outlined in Circular No. 199/11/2023-GST applicable to import of services between related persons
- Registered persons in India importing services from related persons outside India must pay tax under reverse charge mechanism and issue self-invoice
- Circular provides clarity and simplifies compliance for businesses importing services from related persons
Source: taxupdates.cagurujiclasses.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
