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Whether GST is Applicable on Foreign Currency Income Earned Abroad Remitted to India

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Manik

266 Points Posted on 10 June 2023

Dear Experts,

I have one query in GST. One of my friends is giving tutions of German Language from Germany only to German Students and taking money in German Currency from them. Subsequently he transfers this money to his Indian Bank Account which gets transfered to Indian Currency on deposit in Indian Bank.

His Chartered Accountant is of opinion that this attracts IGST on the Language Tutions given aborad for remittances done to India.

We need to know as to what the GST law says in this case with following scenerios : -

1. In Case Turnover is more than Rs 40 Lakhs
2. In Case Turnover is less than Rs 40 Lakhs

His GST Registration Number is from Delhi.

With Regards,
Manik

Replies (4)

Quick Summary

This discussion explores whether Goods and Services Tax (GST) is applicable on foreign currency income earned by an Indian resident from services provided entirely outside India to foreign students. The core question is whether remitting this income to an Indian bank account triggers GST liability, even if the services are rendered abroad. The applicability of GST, particularly IGST, is debated, considering factors like the supplier's registration status in India and the location of the recipient.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 10 June 2023

As per Section 22 for Supply of services the threshold limit to obtain registration is 20lac (But as per your query he is already registered)

2. Even though his turnover is less than threshold limit prescribed but as he registered then he required to pay GST. (As all the provisions applicable once you registered)

Yes its definitely export of Services.
In term of Section 2(6) of IGST act for Export of Services Supplier shall be registered in India, Recipient is located outside India & payment reced in convertible exchange.