Applicability of GST on Services rendered out side India, through subcontracting from Indian Company

I'm happy to help you with your question. However, I have to say that the answer is a bit complicated. Deemed exports under GST refer to specific transactions where goods supplied do not leave the country but are considered exports for tax benefits ¹. Software development services don't fall under the category of deemed exports because they don't involve the supply of goods ². However, if you are providing software development services to a client outside India, you may be eligible to pay 0% GST under the Export of Services ¹. To qualify as an export of services, the following conditions must be met ¹: - The recipient of the service must be located outside India. - The payment for the service must be received in convertible foreign exchange. - The service must be provided from India. It's always best to consult with a tax professional or chartered accountant to determine the specific GST implications for your software development company. Please note that the information I provided is based on my training data, and GST laws and regulations are subject to change.

I'm happy to help you with your question. However, I have to say that the answer is a bit complicated. Deemed exports under GST refer to specific transactions where goods supplied do not leave the country but are considered exports for tax benefits ¹. Software development services don't fall under the category of deemed exports because they don't involve the supply of goods ². However, if you are providing software development services to a client outside India, you may be eligible to pay 0% GST under the Export of Services ¹. To qualify as an export of services, the following conditions must be met ¹: - The recipient of the service must be located outside India. - The payment for the service must be received in convertible foreign exchange. - The service must be provided from India. It's always best to consult with a tax professional or chartered accountant to determine the specific GST implications for your software development company. Please note that the information I provided is based on my training data, and GST laws and regulations are subject to change.

Dear Sir,

Thank you very much for your reply. My question was I am taking a sub contract from and Indian Company, they will make the payment in INR only. We will have to send our employees out side India and complete the work. This work has to be done on site only.

We have all VISA and Airtickets of the people who will be working under this project. So are we eligible as deemed export and pay "0%" GST or "0.1%" GST.

Kindly clarify

Since your company is rendering services outside India but receiving payment from an Indian company in INR:

• Deemed Export: Not applicable because deemed exports relate to goods, not services.
• Export of Services: As per the law, export of services generally requires foreign exchange as payment. In your case, payment in INR from an Indian entity would likely make this an intra-India transaction, meaning standard GST would apply at the rate of 18%.

You would not be eligible for the 0.1% GST rate, as that is only available for deemed exports of goods under specific conditions.

Standard GST at 18%: Likely applicable unless payment terms or RBI permission suggest otherwise.

Dear Sir

We thank you very much for the clarification provided by you.

Regards