GST in case of foreign client having office in foreign country but the work to be executed in India

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Quick Summary

If you're a GST-registered business performing work in India for a foreign client with no Indian office, you generally need to charge GST. The key factor is the 'Place of Supply' (POS). If the POS is determined to be India, GST is applicable. You'll also need to consider if a Letter of Undertaking (LUT) is necessary, which may require an Import Export Code (IEC).

Suraj Mishra PECPL

Suraj Mishra PECPL (Querist)

09 March 2023 We are GST Registered person. Our client is in foreign country and having their office in foreign country. They gave us a small amount tender, work is in 2-3 cities in India. Now while raising Sales Invoice, do we need to charge GST or not?. Also, do we need to file LUT (Letter of Undertaking? Whether IEC (Import Export code) is needed for filing LUT? Can we file LUT without IEC

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 March 2023 GST need to be charged as work done in India.
It's not a import or export.

Suraj Mishra PECPL

Suraj Mishra PECPL (Querist)

09 March 2023 Sir, We will raise bill to foreign client having address in foreign country.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 March 2023 No problem service rendered in India raise with GST.

CA Altamush Zafar

CA Altamush Zafar (Expert)

10 March 2023 You will need to see what is the place of supply (POS). There are different provisions of POS for different categories of service. If POS is in India then GST will be chargeable. If POS is outside India then subject to other conditions it will be regarded as exports

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