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What income? Export of services.

P MURUGAN (ACCOUNTANT) (202 Points)

09 October 2024

An assesee who got registration in india and paid gst for their business in india.He got the opportunity to act as broker or intermediary for the person who outside india to sell and buy some goods within outside india i. e without removal of goods from india, and for that he got amount or consideration from outside india. Now my query is under what income he will charge GST? Is GST applicable for this transaction?

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7600 Points)
Replied 09 October 2024

The assessee's scenario involves facilitating sales and purchases of goods outside India, without removing goods from India, and receiving consideration from outside India. This is considered an export of services. GST applicability: - As per IGST Act, Section 3(1), supply of services is considered an export if the recipient is outside India. - As per IGST Act, Section 2(6), "export of services" means the supply of services which are consumed outside India. GST chargeability: - The assessee's service is an export of services, which is zero-rated under GST (IGST Act, Section 16). - No GST is payable on this transaction. However, the assessee may need to obtain a GST registration as an exporter of services and comply with related procedures. - Ensure compliance with GST regulations and procedures