21 January 2022
Hello! I provide online software and marketing services to clients in India as a freelancer. My income this year is below the threshold limit of Rs.20 Lacs and hence I did not get myself registered for GST. Now, from next year onwards, I will be providing similar services to clients abroad as well in addition to the domestic services. As per my understanding, these will be termed as export of services and I will have to compulsorily get registered under GST ( I can submit an LUT and not pay tax on these) since these are treated as inter state supplies. Now, My query is that once I get registered because of my export services, will I have to declare my domestic sales of services as well? Will I have to pay GST @ 18% on my domestic services ( services that I render to clients in India) even though the aggregate of both domestic as well foreign sales is below Rs. 20 LAcs ? Will really appreciate a reply on this query since I could not find a similar situation posted by anyone on this platform. Thanks in advance
21 January 2022
Yes, from the day of your registration you will have to pay GST on all your sales except for those of exports. You will have to give your customers Tax Invoice and collect GST from them. You will have to pay GST on these domestic sales to the government.
23 January 2022
"If your services will remain below 20 lakhs on considering aggregate of export and domestic supplies no need to take registration regardless of having interstate supplies."
CA Altamush Zafar - Can you share a circular/ notification in support of this statement. Because this is the main point of confusion.
I am confused about this point since I read something to the contrary here : https://www.indiafilings.com/learn/gst-on-freelancers/
Under the heading GST registration for freelancers - Exporting services , this article mentions this statement : "To be more precise, the exemption of INR 20 Lakhs is only relevant to small business who earn their revenue from clients and entities present within the state. Hence, GST registration is mandatory for every freelancer who exports services outside the state or the country and earns revenue from the same, with any exemption limits. "
24 January 2022
Please refer to this Notification No. 10/2017 – Integrated Tax dated 13th October, 2017
Persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act. Export of Service is also inter-state supply