Gst on International business

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This discussion clarifies the GST treatment for an Indian artist selling paintings internationally and receiving payment in India. The sale is considered a zero-rated export, meaning GST is not applicable if a Letter of Undertaking (LUT) is furnished. For income tax purposes, this international sale is typically clubbed with domestic sales, though relief may be available for any taxes paid in the foreign country.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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01 July 2022 Dear Sir/Mam,

One of my client is into Art business in India and is registered under GST has sold his painting abroad and received the amount in India after conversion of currency in Indian rupees.

I want to know what is the impact of GST on International trade and do he has to pay GST on the amount received from abroad.

Also incase of Income tax, is there any seperate calculation he has to do or this sale will be clubbed with his domestic sales.

Please help me in this matter.

Regards,
Divyesh Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 July 2022 Furnish letter of undertaking in GST portal .
Such exports are zero rated exports GST not applicable.
This sale will be clubbed with domestic sale relief can be claimed on any tax paid outside India.

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DIVYESH JAIN

DIVYESH JAIN (Querist)
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01 July 2022 Ok Sir, Thanks for your valuable response.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2022 You are welcome............

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