Hello Exports
One of client sends video clips and edited videos to US based company for which he received payment in USD, his total turnover exceeds Rs.20 lakhs, I have 2 questions
1. He has registered under GST, and earlier he used to submit LUT in FY and then report his receipts as Export under LUT and used to file GST return, is that correct?
2. Does he required to obtain Import - Export Code ?
| Export of digital content services is an important area with specific GST treatment: 1. Export of Services Definition: Under Section 2(6) of IGST Act, export of services requires: (a) supplier in India, (b) recipient outside India, (c) place of supply outside India, (d) payment in convertible foreign exchange, (e) supplier and recipient not merely establishments of same entity. 2. Zero-Rated Supply: If all 5 conditions above are satisfied, export of digital content (videos, e-books, courses, software, etc.) is a zero-rated supply — no GST payable. 3. How to Export Without GST: File Letter of Undertaking (LUT) in Form RFD-11 annually on GST portal → then issue export invoices without charging GST and claim ITC refund on accumulated credit. 4. OIDAR Services: Digital content supplied to non-business recipients in India by foreign companies is governed by OIDAR (Online Information and Database Access or Retrieval) provisions. However, if an INDIAN supplier exports digital content to recipients OUTSIDE India — it is treated as export of service (zero-rated), not OIDAR inbound. 5. Place of Supply for Digital Services (Section 13 of IGST Act): For B2B: Place where the recipient is located. For B2C: Place where the recipient is located (if identifiable) or location of supplier. For export — recipient is outside India, so place of supply is outside India → confirms zero-rated status. 6. GST Registration: Mandatory if turnover exceeds Rs. 20 lakh (Rs. 10 lakh for special category states) — even for exporters, GST registration is needed to claim ITC refund. 7. FEMA: Ensure foreign exchange is repatriated and eBRC/FIRC is obtained for services export. |
CCI
Pro
CAclubindia
