GST for services or software purchase outside of India for my business

Import / Export 346 views 1 replies

Hello, I sell my services only in New Delhi. My revenue is less than Rs. 20,00,000 in one year. It is around Rs. 18,00,000

Do I have to pay GST on the money from my services?

I have some expenses in my business. These are software and services purchased outside of India. Like cloud hosting etc. 20% of my revenue goes to expenses outside of India. For example, I pay around 10% of revenue as web hosting, cloud hosting to a Germany company "Hetzner". I pay for these in Euros €. Around 10% is spent on the software subscriptttion purchases required to do my work. For example, GitHub, RedGate, Hypervisor etc. I pay for these in US dollars $. So, around 20% are expenses billed to services / purchases outside of India. So, do I have to pay GST for those 20% cost?

Replies (1)

Hi Ankit

As per the details provided by you of foreign payments, the GST registration is mandatory in your case as the GST has to be paid on RCM basis.

For more details, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
ACA. Sorav Gupta
(Practicing Chartered Accountant)

 


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