GST applicability if both domestic and foreign services rendered

Registration 764 views 6 replies

Hello! I provide online software and marketing services to clients in India as a freelancer. My income this year is below the threshold limit of Rs.20 Lacs and hence I did not get myself registered for GST.

Now, from next year onwards, I will be providing similar services to clients abroad as well in addition to the domestic services. As per my understanding, these will  be termed as export of services and I will have to compulsorily get registered under GST ( I can submit an LUT and not pay tax on these) since these are treated as inter state supplies.

Now, My query is that once I get registered because of my export services, will I have to declare my domestic sales of services as well? Will I have to pay GST @ 18% on my domestic services ( services that I render to clients in India) even though the aggregate of both domestic as well foreign sales is below Rs. 20 LAcs ? 

Will really appreciate a reply on this query since I could not find a similar situation posted by anyone on this platform.

Thanks in advance

Replies (6)
No.... if your Turnover is below threshold limit of 20 lac as prescribed in Section 22 CGST Act you are not liable get yourself registered.
As per Section 7(5)(a) of IGST Act , export Services fall under Inter state supply & As per section 24 of CGST person making any taxable inter supply is mandatory to obtain registration irrespective of turnover , but In term of Notification 10/2017 there is exemption to supplier of services for inter state supply (enjoy the threshold limit)
Hence you are not required to take the registration even if you export services.

* yes if you do take the registration, you have to declare your domestic supply also & need to pay tax @ 18% on the same.
Originally posted by : Pankaj Rawat
No.... if your Turnover is below threshold limit of 20 lac as prescribed in Section 22 CGST Act you are not liable get yourself registered. As per Section 7(5)(a) of IGST Act , export Services fall under Inter state supply & As per section 24 of CGST person making any taxable inter supply is mandatory to obtain registration irrespective of turnover , but In term of Notification 10/2017 there is exemption to supplier of services for inter state supply (enjoy the threshold limit)Hence you are not required to take the registration even if you export services. * yes if you do take the registration, you have to declare your domestic supply also & need to pay tax @ 18% on the same.

Thank You Mr. Pankaj. But I am still confused about this point especially since I read something to the contrary here :

https://www.indiafilings.com/learn/gst-on-freelancers/

Under the heading ,GST Registration for Freelancers - Exporting services , this statement is mentioned :

"To be more precise, the exemption of INR 20 Lakhs is only relevant to small business who earn their revenue from clients and entities present within the state. Hence, GST registration is mandatory for every freelancer who exports services outside the state or the country and earns revenue from the same, with any exemption limits."

Hence, I am confused.

Take professional opinion for the same with all reasoning.

@ ca nupur sharma ji

I tell you about it , at what context it is been written that freelancer is mandatory required to obtain registration.

Yes i can assure you that there is no separate law is drafted for freelancer in this regard.

 

 

sorry its *I cannot tell you about it,

Hi I think nobody have complete knowledge about freelancing GST law . everything  blindly . I am freelancer and registered in GST and LUT regular filing my returns with my CA and never got refund which i paid for payment services . very painful 


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