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Composite GST & Foreign Clients

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B Sam

Developer

21 Points Posted on 18 March 2022

Hello,

We are a small IT consultancy firm based in Chennai with annual turnover of less than Rs. 40 lacks. Our revenue comes from 70% foreign & 30% domestic.

Would like to have a clarity about the following:

1. Can we voluntarily opt for composite tax? If so, how much we should pay?

2. Do we pay GST for services rendered to foreign companies?

Thanks

Replies (9)

Quick Summary

An IT consultancy firm in Chennai with a significant portion of revenue from foreign clients is seeking clarity on GST. They are asking if they can opt for the composite tax scheme and how GST applies to services rendered to overseas companies. The discussion clarifies that exporting services means they cannot opt for the composite scheme and must register under the regular scheme. Export of services is zero-rated, meaning tax is either paid and refunded, or an LUT is submitted, provided conditions are met.

prasad Nilugal

GST Practitioner & Accounts

8994 Points Posted on 18 March 2022

Its export of service , you can not opt for composition scheme . you have to take regular registration because you cross threshold limit of 20 Lac for registration . export of service is zero reated supply in GST , you either pay IGST and claim refund or submit LUT without payment of Tax subject to conditions .

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 18 March 2022

Composition scheme is applicable only to intrastate supply .Since there are export of services outside the state , you can't apply for composition scheme

shashi kala

22 Points Posted on 18 March 2022

Hi, i want to know what's the status of gst on royalty paid to mines and geology department

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 18 March 2022

Why we get daily 3 to 4 calls or messages for loan , credit card etc ?

Are the banks allowed to share contact details of customers to outsiders ?

Banks sharing contact details to outsiders