• Freelancer GST

Hello,
I am freelancer web developer and completely working through upwork.com & freelancer.com sites.
So I am getting all of my wages in USD form and getting Bank FIRC as well But My total turnover is less than 20 Lacks.

I have already registered for GST as a Sole Proprietor and paying 18% GST for every remittance as per my previous CA suggested but I came to know about the new amendment into the GST and threshold limit seems 20 Lacks.
I tried to claim the refund for one of the months but still waiting for the appointment...So it seems a little bit hard to get the refund easily.

My query is that:-
1.) Can I stop paying 18% GST as my turnover is less than 20 Lacks?
Asked 6 years ago in GST

You can apply for the LuT and then export without payment of GST.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

In case of export of services, threshold limit of Rs. 20 lacs is not applicable.

Following two scenarios arises in case of export of services.

1) Export with payment of GST and thereafter claim refund of GST.

2) Export without payment of GST by furnishing the bond/LUT to the GST authorities.

Note- You can submit LUT only when in previous year you realized atleast 1 crore or 10% of turnover proceeds from exports.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Yes Rs. 20 lacs limit is applicable to freelancers. If your turnover is less than Rs. 20 lacs then dont pay GST on it. You can claim refund for the paid GST.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Hi ,

Firstly, the supply of goods or services outside India has been considered as Inter state supply under GST.

As per the Indian tax laws and latest updates, for the export of services out of India, you are liable to register under GST. However, if your services are NIL rated, then you can first pay GST and then claim refund. The other option is to obtain a letter of undertaking (LUT) from the jurisdictional authority. Once you get the LUT, you will not be required to pay GST on the services or on your invoices. But the return filing would still be required.

So the reporting of the export sales or turnover will remain intact but you may avoid GST levy by taking LUT.

Thanks

Damini

Damini Agarwal
CA, Bangalore
405 Answers
31 Consultations

5.0 on 5.0

Since your turnover is below 20 lakhs, you are not liable to GST registration as per the new amendment. You can apply for cancellation/surrender of GST registration.

Till you are registered under GST, returns have to be filed and GST has to be paid if LuT is not taken.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

You should not be disappointed. What I answered was correct. Don't doubt.

Get the updated details please. With amendments in Oct 17, LuT has been extended to all registered persons who intend to supply goods or services for export without payment of integrated tax.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

As you are carrying GST registration and your GST refund is pending, file GST Nil return till you cross Rs. 20 lacs limit.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Hi,

I checked the link before replying.

I am also saying the same thing, that basis the recent ammendments bought in, you just need to file the return but need not pay any GST.

If you have foreign clients, then you dont need to charge GST but still you have to file the return.

Thanks

Damini

Damini Agarwal
CA, Bangalore
405 Answers
31 Consultations

5.0 on 5.0

Hi,

Since you are already registered under GST but your turnover is less than Rs. 20 Lakhs, you are not liable to pay GST or charge GST on your invoices, but you are liable to file your GST Returns regularly.

Further, for export of services, you need to take approval under LUT for export of services without payment of GST.

Hence, as your turnover is less than Rs. 20 Lakhs at the same time your services are of export nature, you are not liable to pay any GST. You will get your pending refund only after you satisfy that your turnover is less than Rs. 20 Lakhs and also that you have not claimed any ITC during this period.

Regards,

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

Hi,

You have two options:

1. Surrender GST and then stop charging GST to the clients. You can't stop paying GST without surrender of GST. or

2. You can take LUT and export services without payment of GST but you will have to file your returns. Please note the threshold for taking LUT has already been gone.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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