GST Registration for Interstate supplies/export of services

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This discussion clarifies GST registration requirements for exporting services. While Notification 10/2017 exempts interstate service supplies below £20 lakh from mandatory registration, a government FAQ suggests registration is compulsory. However, the prevailing view is that if your service export qualifies as an interstate supply and your turnover remains under the £20 lakh threshold, GST registration is not compulsory.

Dipen

Dipen (Querist)

19 May 2022 Hi,

If service is export of services and turnover is within registration limit of 20 lakhs , then GST registration is compulsory?

There is confusion because of below :

- Notification No. 10/2017 – Integrated Tax dated 13/10/2017 specifically exempts GST registration for inter state supplies of taxable services if turnover below 20 lakhs (since export is inter state supplies)

- FAQ published by government dated 22/12/2017 says it is compulsory to register for GST even if below threshold limit of 20 lakhs

Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 May 2022 GST registration required for export of service and interstate supply threshold not applicable.

Udaya Chandran

Udaya Chandran (Expert)

20 May 2022 As per my opinion, according to section 7(5)(a), supply of services when the supplier is located in India and the place of supply is outside India, shall be treated as inter-state supply.

Notification No. 10/2017 – Integrated Tax exempts the persons making inter-state supplies of services, not exceeding Rs.20 Lakhs in a financial year, from compulsory GST registration.

If the person supplies ‘Export of SERVICES’ within the threshold limit, and the place of supply is outside India, then he need not to take GST registration.

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