Goods & Service Tax (GST) 29 September 2026
Indian Firms Can Claim GST ITC on Foreign Software Subscriptions
Indian companies purchasing foreign software subscriptions can still recover input tax despite the supplier lacking an Indian GSTIN. The article explains the GST reverse charge mechanism, self‑invoicing requirements, filing of GSTR‑1 and GSTR‑2A, and how to claim ITC while avoiding common pitfalls.
- Reverse charge applies: The Indian recipient must self‑assess GST on foreign software services.
- Self‑invoicing: Create a tax invoice with GSTIN, rate, and tax amount to support ITC.
- ITC claim: Record the tax in GSTR‑1 and match it in GSTR‑2A to claim input credit.
- Reporting: Include details in the quarterly GST return and maintain supporting documents.
For the complete step‑by‑step guide, see the original article.
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