Export of Service

I want to Start Business w.r.t export of service can anyone please guide me what are the compliance i need to take care of in GST and Income Tax point of view..

 

Thanks in Advance.. 

Replies (2)
Quick Summary
This discussion focuses on the compliance requirements for exporting services from India, particularly concerning GST and Income Tax. Exports of services are generally treated as zero-rated supplies under GST, meaning no GST is levied. While IGST might be paid initially, a refund can be claimed by filing specific documents like a Shipping Bill. Alternatively, businesses can opt to export without paying IGST by using a Letter of Undertaking (LUT), especially if no input tax credit will be claimed.

The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. ... A guidance note relating to the above issue was released by the Indian government which has helped in clearing doubts regarding the claim of input tax credit on zero-rated exports.

If you pay IGST on exports you can claim the refund on this Integrated GST paid, by filing a Shipping Bill (Deemed Refund Application) & other supporting documents. The person-in-charge of such exports must file an Export Report or Export Manifest & mention the Shipping bill number & dates to file a refund claim.

Treatment of Export under GST
Under GST, export of goods or services are treated as follows:
# Inter-State supplyand covered under Section 7(5) of IGST Act. Export of goods or services are treated as Inter-state supply under GST and accordingly, IGST is charged on export.
˜Zero rated supply and covered under Section 16(1) of IGST i.e. the exported goods or services shall be relieved on GST and levied upon either at the input stage or maybe at the final product stage.
 

Dear Sir,

I will be engaged in exporting service and want to export without payment of IGST under LUT and have no intention to claim refund as i wont require any purchases to be made while exporting services so no ITC would be involved which provision i should comply with under that scenario.

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