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Taxes on export of software services outside india

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This query is : Resolved

Hairsh G V (Querist)

20 August 2018 Im a self employee, my job is to exporting services to outside the India, all my export services fall under 0% IGST,

I received 100% full payment on July 27th 2018 from foreign client
Im going to generating the invoice and exporting the software to him on 25th August 2018
I already registered GST and taken LUT Bond on 20th August 2018,

Now my question is
1. Full 100% payment what i received in last month is considered as Advance Payment and do i need to pay tax on Advance payment?
2. Since i have taken LUT, can i export under LUT rather than paying IGST?
3. What are all the taxes i need to pay?

Rajesh Kumar

Rajesh Kumar (Expert)

21 August 2018 1. Yes. You can book the amount received as advance. You are not required to pay GST on such advances received for exporting services.
2. Yes.
3. No, you are not required to pay any tax on this transaction (except direct taxes).

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