Gst on export of services (consulting)

Import / Export 887 views 4 replies

RCI

MBA

33 Points Joined June 2015

Dear Sir/s,

This is with regards to the implementation of GST in India and its implications on our business, we need certain clarifications:

1) Whether a company engaged in export of services (Consulting) require GST Registration? We bill our clients in foreign currencies only. Our service include providing market research/information report in electronic version, identification of partner (Indian cos) for foreign companies in India etc. We have IEC No & PAN of our partnership firm. We do not engage in any kind of trading, procurement, selling or promotions of any goods.

2) If yes, is there any revenue limit post which it's mandatory?

3) In case we get some order from Indian customer which shall be mere 2-3% of overall revenue and in tunes of less than 5-8 Lakhs, will we need GST registration to cater to Indian clients or if we do not have GST that means we can not cater to Indian clients?

Request you to revert at your earliest convenience.

Look forward to your response and thanks in anticipation.

Best Regards,

R. K.

Replies (4)

ATUL SHAHADE

PARTNER

31 Points Joined April 2012

Registration is compulsory when aggregate turnover exceeds Rs. 20 lacs.
This aggregate turnover includes all export turnover also.

CA. Punith Harish

PRACTICING CHARTERED ACCOUNTANT

445 Points Joined April 2012

if your turnover exceeds 20 lakh in the year you need to register under GST .

if your exporter than you r not require to pay any taxes but whatever taxes you will pay on your inputs you will get the refund for the same.

so it is better to take registration under GST u will be benefited from the same..

RCI

MBA

33 Points Joined June 2015

Hi,

Thanks for your revert/s. We do not avail services in general. So we do not have much to pay on inputs (alsmost NIL). In case if we incur any cost on input service and want to forego the claim of tax benefit on any such inputs, then do we still need to register under GST if our revenues exceeds 20L. It may sound weired, but as our services are under zero duty, we do not want to register for it - to save our effort & time every month on filing GST, untill unless it is complulsory and a must need. Have gone through multiple releases of documents published by Govt. / Tax authorities and Tax Consultants but was not able to figure out exactly if it is mandatory or not in our kind of business.

Will appreciate your kind guidance on the same.

Thanks & Regards,

R.K.

CA. Punith Harish

PRACTICING CHARTERED ACCOUNTANT

445 Points Joined April 2012

As per Sec.2(6) of CGST Act, “aggregate turnover" means.

“aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

defination says all taxable supplies, export is also taxable supply but tax rate is zero.

So if your turnover exceeds Rs. 20 lakhs than registration is complulsory even if you not take input tax credit benefit also.