Gst provision on Foreign income

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A software consultant receiving foreign income exceeding Rs. 22 lacs in FY 2020-21 needs to register for GST. This is because income from foreign clients is considered an export of services, and the usual Rs. 20 lac threshold does not apply in such cases. While registration is mandatory for current and future income, it's important to address non-compliance for the previous year.

DIVYESH JAIN

DIVYESH JAIN (Querist)

10 February 2022 Dear Sir,

One of my client is a software consultant and has received income in US dollars from abroad of Rs. 22 lacs in F.Y. 2020-21.

His Income tax return is filed U/s. 44ADA. The foreign company doesn't deduct any TDS on the amount paid by them.

I want to know, do my client has to register under GST in such case as in future years too he will be receiving income more than Rs. 20 lacs from foreign company.

Please help me in this matter.

Regards,
Divyesh Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2022 GST registration is required as it will fall under export of service if service is provided from India.
In case of export of service limit of 20 lacs not applicable. Register under GST and file letter of undertaking in GST portal.

DIVYESH JAIN

DIVYESH JAIN (Querist)

10 February 2022 Ok, Thanks for your valuable response

CA Altamush Zafar

CA Altamush Zafar (Expert)

12 February 2022 Since limit has crossed you will have to take registration. Below 20 lakhs you were not required to be registered even in case of export of services. . You will not be able to file LUT for previous years. Relevant safeguards will need to be taken for previous years non compliance.

DIVYESH JAIN

DIVYESH JAIN (Querist)

12 February 2022 Ok, Thanks for the information

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