Gst on export of service

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Sahil Bhatia (Querist)
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15 April 2018 Hi,

I'm a service provider providing freelance game development service to Valve Inc.(Foreign Entity). The amount (Less than 20 Lakh) is received in foreign currency as a % of sales of the game i work for.
Now my question is
Am i liable for GST registration and payment of GST on RCM basis. Or is it exempt under export of service

Thanks

Sunil

Sunil (Expert)
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15 April 2018 For all services provided to entity outside of India, whether export or not, you have to take GST number and pay the service tax and claim refund

Sahil Bhatia

Sahil Bhatia (Querist)
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15 April 2018 Thanks for the quick reply

since i haven't taken registration because my gross receipts were less than 20L in Previous year. can i take registration now and pay all taxes?

Sunil

Sunil (Expert)
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16 April 2018 It is not very clear now. There was no treshold limit for Interstate services and even for exports one had to register when GST started. However from October 13, 2017 there is a circular exempting Interstate Services upto 20 Lakhs (not goods). Therefore I suggest (my opinion) you take voluntary registration and claim ITC on whatever services you use other than those in 17 (5) and services used for personal purpose. You can use both ITC and Cash to discharge the service tax payable on export of service. Once you comply with the export provisions, mainly receiving payment in foreign exchange, you apply for the refund. What will happen is your cash you paid as well as the input ITC will come back to you as a refund. However, please consult your CA and do all this as refund is a cumbersome process.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 April 2018 Your service is exempt under export of service. But register under GST and furnish online in GST portal letter of undertaking no need to pay any GST on such exports.

Sahil Bhatia

Sahil Bhatia (Querist)
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21 April 2018 Thank you so much to both the experts

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