Input Credit In Gst From Overseas Entities

Mukund phadke
watch_later 3 years, 5 months ago


We deal in Cloud services. A company in USA raises an Invoice every month and they charge IGST in USD itself. We gave our GSTIN to them but in our portal we are not able to see any input credit of the IGST charged by the Cloud.

The tax charged is in thousands of Dollars and we are making huge loss in the business since implementation of GST.

Today I came across one article which says that foreign entities are given different GSTIN and it also says that they should not charge IGST.

How can we claim the input credit in GST from our partner company? Please guide us in this regards.

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1 Answer

GST Payer watch_later 3 years, 5 months ago

If they are charging GST then I doubt you will get the input tax credit. However if they are not resident and have taken registration as a foreign entity, the best solution will be to give them your GSTIN. Charge GST under RCM and claim input tax credit.

Digitalocean for example, if you provide them GSTIN they do not charge GST and liability falls on you.

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