Raj Jaggi
Quick Summary
The Borderless Professional - A New GST Reality The contemporary professional environment has transcended traditional geographical limitations. A software developer based in Gurugram today could be programming for a client in California; similarly, an IT consultant situated in Pune might be managin
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FAQ :
The five conditions are: 1. The supplier of service must be located in India. 2. The recipient of service must be located outside India. 3. The place of supply must be outside India. 4. Consideration must be received in convertible foreign exchange. 5. The supplier and recipient must not be merely establishments of the same person.
No, not necessarily. The GST law requires receipt in convertible foreign exchange, not specifically in an Indian bank account. As long as you can provide documentary evidence of receiving the payment in foreign currency, the condition is met from a GST perspective.
FEMA requires that export proceeds are realised and repatriated to India within prescribed periods, unless specific permission for retention abroad is obtained. While not directly negating export status under GST, prolonged or unauthorised retention of funds outside India can attract scrutiny under FEMA.
GST registration is required if your total turnover of taxable supplies (including zero-rated exports) made by an Indian-based person exceeds the specified threshold limit, regardless of whether services are provided within India.
This condition prevents internal cross-border arrangements within the same legal entity from being misclassified as exports. If the supplier and recipient are merely different branches or establishments of the same company, the transaction is not considered a genuine external commercial supply and thus not an export.
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