Question ID :
44875
Import of services - RCM applicability
Dear Professional Colleagues, If a school avail services of a non resident individual for teaching the students, whether these services attract GST on RCM to be paid by school?. The school is having Form 10AC for income exemption u/s 10(23C).
Posted by
ESWARAIAH Y
on
Jun 16, 2025
Filed Under
GST
If the school is a charitable educational institution, provides exempt education services, and avails teaching services from a non-resident individual, then **RCM under GST is not applicable, as the import is not in furtherance of business.
Posted by
CA. SURAJ KUMAR CHOUDHARY on
Jun 17, 2025
Answer ID :
85913
Import of service is taxable irrespective of whether it is received for business or not as per section 7(1)(b).However, since school is exempted from registration under section 23 and section 24 overrides only the section 22, it is not required to register under gst and hence not liable to pay RCM.
Posted by
LOKESH DINESH SONI on
Jun 18, 2025
Answer ID :
86036
If the services procured are in the nature of Import of services (which appears to be in this case), then there would be a RCM liability which would trigger on the school in the absence of any specific exemption coming from entry 66. Which would promise a compulsory registration under Section 24 of the CGST Act. Though a view is possible based on Sec 23 registration need not be taken. This comes with a risk that , the overriding effect is provided in Sec 23(2) and not in sub section (1). As per Sec 23(1) as the school is only making outward exempt supplies it need not take registration. However to this extent Sec 24 is more specific and Sec 23(1) do not override 24. It is suggested on a conservative basis to pay gst under protest by obtaining gst registration.
Posted by
SREENIVASULU THULASIRAM on
Nov 22, 2025