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GST on export of consultancy service

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CA BINIT SHAH

ERP Consultant & Tax Consultant

219 Points Posted on 19 June 2020

I have a client who is a free lancer who has signed a contract with a Company in US. My client sends invoice on a monthly basis for the work done and the money that is paid is in INR as the company in US uses transferwise to transfer the money in my clients bank account.

Does my client need to charge GST on the invoice?

Since it is an export of service would he still need to charge GST? Will it be considered as a zero rated service?

Does any section mentions about the proceeds on invoice incase of export of service?

Replies (2)

Quick Summary

This discussion clarifies whether GST is applicable on consultancy services exported from India. It confirms that such services, even if paid in INR via platforms like TransferWise, qualify as zero-rated under the IGST Act, 2017. Freelancers exporting services can claim a refund of accumulated Input Tax Credit (ITC).

Hemal Makwana

Designation

384 Points Posted on 19 June 2020

Assuming it's consultancy service, the transaction qualify as zero rated service. Amount can be received in INR. pls refer definition of 'export of service' under IGST Act, 2017. it will clarify all your concern.

additionally, your client is entitled to avail refund of accumulated ITC