55th GST Council Clarifies Input Tax Credit Rules for Offshore Cloud Licenses
India's GST Council has issued detailed circular guidance resolving ambiguity regarding Reverse Charge Mechanism (RCM) applicability on imported developer tools and cloud hosting.
The 55th Goods and Services Tax (GST) Council meeting concluded with a key circular clarifying the treatment of cross-border software subscriptions imported by Indian technology enterprises.
The circular confirms that registered businesses paying GST under Reverse Charge Mechanism (RCM) on foreign developer SaaS platforms and hosting services are fully entitled to claim 100% Input Tax Credit (ITC), provided the tools are deployed directly for business operations.
Calculate forward and reverse tax breakdowns with the Online GST Calculator.
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