GST Filing for Web Hosting Business

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This query is : Resolved

Sohail Ahmed (Querist)

21 July 2022 Hello,

I recently started a Web Hosting business and looking forward to registering my proprietorship firm with a new GST number. Before that, I have a few doubts regarding the import & Export of services (as my business involves me importing & exporting hosting services to international customers/companies). I found a lot of guides on the same online but I have a few specific doubts whose answers I am unable to get on the net.

1. I have to import services like renting servers from an International data center monthly. As per the law in GST, All international companies dealing with Indian customers have to file IGST in the case of the registered customer. Okay! I talked to my data center billing team and they say, they are not interested in filing GST nor they are governed by Indian laws, use our services on your own. How do I claim input credit in such a case? What to do in such a case?

2. In the case of export of services, I have many international customers whose invoices are generated in USD or other international currencies and make payments through gateways like Paypal, stripe, etc. The customer makes payment in USD to PayPal and the payouts are converted & settled in INR to an Indian bank account. Now, as per the law for claiming zero-rated support or claiming the transaction as an import of services, the currency of the payment should be in international currency. In my scenario the payment was collected in USD and settled in INR, does this count as Import of service?

3. There are times when customers file a chargeback for payments made even after 1 year. I would have filed the GST till then, how would I deal with such situations?

4. Can an individual/ proprietor register under Letter of Understanding if he deals with the import/ export of OIDAR services?

5. My turnover is less than 20L is it mandatory for me to register for GST?

6. RCM in my case for import of services involves me generating a self invoice. Is it true? If
yes, what is the standard format for generating such invoices when payments happen
in dollars?
These are some doubts I have whose answers I am looking forward to!

Thanks in advance!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 July 2022 1 GST not applicable on renting of servers outside India.
2 yes it's export of service.
3 can't understand the query.
4 yes.
5 Not mandatory.
6 Invoice for import of service will be there.

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