royalty received from outside india
This query is : Resolved
08 September 2017
dear sir
IF WE GET ROYALTY INCOME FROM OUTSIDE INDIA ,THEN SHOULD I NEED TO REGISTER UNDER GST OR NOT
10 September 2017
experts pls reply
22 July 2025
Hey! About receiving royalty income from outside India — here’s how GST applies:
GST on Royalty Received from Outside India:
Is GST applicable?
Yes, if you are a GST-registered person in India and you receive royalty income from a foreign entity, it is considered a supply under GST law.
Is it export of service?
Generally, royalty received from a foreign company for use outside India is treated as an export of services under GST, which is zero-rated (i.e., GST at 0%).
Do you need to register under GST?
If your aggregate turnover exceeds the GST threshold (₹20 lakh or ₹10 lakh in some states), GST registration is mandatory.
If your turnover is below threshold, registration may not be required (unless voluntarily done).
Input Tax Credit (ITC) & filing:
Since export of services is zero-rated, you can claim refund of input tax credit if you have paid GST on inputs related to the royalty services.
You must comply with GST returns and documentation to prove export.
Summary:
GST is applicable on royalty income received from outside India as it’s an export of service (zero-rated).
Registration depends on turnover.
You must issue proper invoices, file GST returns, and maintain records.
GST on Royalty Received from Outside India:
Is GST applicable?
Yes, if you are a GST-registered person in India and you receive royalty income from a foreign entity, it is considered a supply under GST law.
Is it export of service?
Generally, royalty received from a foreign company for use outside India is treated as an export of services under GST, which is zero-rated (i.e., GST at 0%).
Do you need to register under GST?
If your aggregate turnover exceeds the GST threshold (₹20 lakh or ₹10 lakh in some states), GST registration is mandatory.
If your turnover is below threshold, registration may not be required (unless voluntarily done).
Input Tax Credit (ITC) & filing:
Since export of services is zero-rated, you can claim refund of input tax credit if you have paid GST on inputs related to the royalty services.
You must comply with GST returns and documentation to prove export.
Summary:
GST is applicable on royalty income received from outside India as it’s an export of service (zero-rated).
Registration depends on turnover.
You must issue proper invoices, file GST returns, and maintain records.
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