GST on IT Services to International Clients

136 views 2 replies

Manu

Owner

21 Points Joined November 2022

Hi,

I am a freelancer developing websites for both Indian and International clients. I have taken GST no. in my company name. My company is a Sole proprietorship company with only me as it's employee.

My query is -

- For Indian clients GST rate on the services is 18% but I am not sure about GST rate on International client

- Since it is an export of services and if it is exempted then do I have to mention in the invoice the GST (VAT) rate as 0%.

Pl. guide me.

Thanks

Manu

Replies (2)

CA Amit Rathore

Chartered Accountant

145 Points Joined September 2012

Yes gst rate of export is 0% & make sure LUT had filed up timely

Regard
Amit Rathore
www.rathoretaxconsultant.com

kl Bhavana

Student CA Final

417 Points Joined July 2013

Hi Manu,

For qualifying as export of services, few conditions needs to be satisfied like recipient should be outside India, POS outside India, Amount received in convertible foreign exchange, supplier located in India, supplier and receipent are not merely an establishments of distinct person.

If above conditions satisfy then it will qualify as Export of services. If you are doing Exports without payment of GST then you need to take LUT under GST. Also, you need to mention LUT details on the invoice. However you need not mention GST as 0% on the invoice. Also you need to generate IRN for the said invoice if exceeded turnover limit.
Please note that you can avail refund of Unutilised ITC in future against the exports made.

Trust this clarifies. If any more clarifications required, please write mail at Bhavana @ lbkca.in, we will be happy to assist you further.

Thanks
Bhavana K L
Chartered Accountant
L B K & Associates