Gst on export of services

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For businesses exporting services, GST registration is mandatory if your annual turnover exceeds £20 lakh. You have two options: either pay GST and claim a refund, or apply for a Letter of Undertaking (LUT) to be exempt, provided you meet specific conditions. While registration isn't required below the £20 lakh threshold, it's advisable to register and obtain an LUT to avoid potential issues and benefit from future government schemes.

Kowsalya

Kowsalya (Querist)
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16 November 2023 Is registration under gst required in case of export of services? if registered, will it come under zero rates services or exempted services? Kindly clarify

Thanks in Advance

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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16 November 2023 GST Registration is mandatory in case of Export of Serivces Value exceeds 20 Lacs in a Financial Year.

Under Export of Service you have two options
1. Pay GST on Export of Service and then claim Refund

or

2. GST Exemption on Export of Service after applying for LUT ( Letter of Undertaking) subject to conditions specified in the act

Udaya Chandran

Udaya Chandran (Expert)
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17 November 2023 According to Notification No.10/2017-Integrated Tax dated 13th October 2017, the 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 Act.
Export supplies are considered inter-state supplies; hence, we can conclude that if your turnover doesn’t exceed Rs.20 lakhs per annum, you may not take GST registration.
However, I would recommend taking GST registration and applying for LUT and supply export of services, not just to avoid any legal disputes, but also because you may have export concessions or benefits in the future if there is any scheme announced by the government.

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