Q. 229 I have import of software and local sales import of software, is RCM applicable ?

Ans. Under IGST Act, section 2(11), “import of services” means the supply of any service, where–– (i) the supplier of service is located outside India; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India; As the above-mentioned services are assumed to be satisfied the definition of import of services then as per notification no. 10/2017- ITR, “any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient” is covered under reverse charge mechanism. Therefore, reverse charge mechanism will be applicable and IGST liability to be discharged.