Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Is GST applicable on services rendered to overseas clients?

1685 views

Save Share

Join Us Follow Us Add as Source

Ramit Saxena

55 Points Posted on 17 January 2025

If I provide a consultancy service to a client outside India, am I liable to charge or pay GST on it?

If this is exempted being outside India, what will be the HSN code used in the invoice?

Replies (2)

Quick Summary

This discussion clarifies whether GST is applicable when providing consultancy services to clients outside India. Generally, exports of services are considered zero-rated supplies under the IGST Act, meaning GST is not charged upfront. However, specific conditions must be met as defined in Section 2(6) of the IGST Act. Businesses can either pay IGST and claim a refund or submit a Letter of Undertaking (LUT) to avoid upfront payment. The SAC code for services remains the same regardless of the client's location, and a GST number is only required if the threshold limit is crossed.

prasad Nilugal

GST Practitioner & Accounts

15136 Points Posted on 17 January 2025

1) Export of Goods or services are Zero rated supply as per section 16(1) of the IGST Act ( please refer) , however you have to pay IGST and Claim refund or submit LUT ( Letter of Undertaking) .

2) Export of service should as per definition given in the section 2(6) of the IGST Act ( please refer) meaning thereby, you have to fulfill all the conditions in section 2(6) of the IGST Act , to consider export of service , and to take a benifit.

Take more opinion on this.