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GST applicability on payment

20 September 2021

I am (Indian firm) expecting a payment from an overseas company (U.S.A) against professional services rendered.
The payment currency will be INR.
Could anyone please tell me if GST is applicable in this case or not?

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5 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 20 September 2021

What type of services you have provided ?.

Ajinkya Bansod (5 Points)
Replied 20 September 2021

Clinical research services

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 20 September 2021

Services provided out of India is treated as export of service and same is Zero rated under GST and two methods to export .

1) You can export with payment of IGST and later on claim refund .

2) You can export with LUT ( Latter of Under taking ) without payment of tax , subject to conditions.
also company in USA should not be sister concern of Your Indian company.

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Ajinkya Bansod (5 Points)
Replied 20 September 2021

Ok, thank you very much for your time and assistance Mr. Prasad.
Have a nice day! :)

Bhavika Kothari (CA) (1258 Points)
Replied 21 October 2021

This is termed as export of service under GST. If you have LUT then you can provide this service without payment of GST (Do mention LUT number on the bill in this case). If you do not have LUT then you can sell by paying IGST and claim the IGST amount as refund

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