How does GST apply when a foreign company provides services to an Indian recipient?

When a foreign company supplies services to a business recipient in India (consulting, licensing, technical support, and similar B2B services), GST law treats this as an import of services. The tax liability shifts to the Indian recipient under reverse charge — the recipient self-assesses and pays GST, then claims input credit if eligible, rather than the foreign supplier registering in India and charging GST on its invoice.

This is different from OIDAR digital services sold to non-business consumers, where the foreign supplier itself must register and charge GST. The distinction between B2B (reverse charge on the recipient) and B2C digital services (direct registration by the foreign supplier) is one of the more commonly misunderstood areas of cross-border GST, and getting it wrong in either direction creates either a missed reverse-charge liability or an unnecessary registration.