Hi,
I am a freelancer consultant involved in providing consultative services to clients abroad. I reside in India and get paid in Foreign currency into my account. My annual income or Turnover is less than 20 lakhs.
Do I need to register for GST and take LUT under export of services?
Is it compulsory for me to take GST ? I even asked to CBEC customer care, they also not sure what is is exact solution ?
In your case, if the recipient's location is available, then the POS shall be the LOR,i.e., in the foreign country. If the recipient's location is not available with you, then the POS shall be the LOS,i.e., your location in India.
In the first instance, as the LOS = India, POS = Outside India, LOR = Outside India, and Consideration received in foreign currency, it shall be treated as "Export of Service" and it will be termed as Zero-rated supply under GST. Accordingly you can take the benefit of ZRS,i.e., you can get refund of the gst paid.
In the second instance, as the POS=India, it will not be called as "Export of Service", hence benefit of ZRS not available.
*LOS = Location of Supplier; POS = Place of Supply; LOR = Location of Recipient.
And yes you have to obtain registration under GST as your supply shall be treated as Inter-State Supply.
As your service is to be treated as Export of Service, you have to obtain registration irrespective of the turnover.
| Originally posted by : shailendra shukla | ||
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Inter- state supply of service upto 20 lakhs- As per notification no 10/2017, any person making inter state taxable supply of service and having an aggregate turnover to be computed on all India basis not exceeding an amount of 20 Lakhs (10 Lakhs for special category of states except J&K) in an financial year then he is not required to get itself registered....is there any other notification superseded the above?..... |  |
No the provision is correct, but I gave my opinion in favour of obtaining registration because the assessee is engaged in export of service. Without obtaining GSTIN, I don't think, he will be able to get the benefit of ZRS.
| Originally posted by : Scrap Tyres | ||
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Does export of services come under interstate supply ? Since am not registered for GST, at present not paying any GST tax or claiming any credit input. | |
Yes, Export / Import both always be treated as Inter State Supply.
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