• GST on international services

I run a company that does transcribe, seo, content creation services for foreign companies. ALL our clients are outside of India. When I raise an Invoice for payment, do I need to include GST?
Asked 3 months ago in GST from bangalore, Karnataka

Dear Sir,

Hope you are doing well !

It will be considered as a zero-rated supply i.e export of services. GST will not be levied on export of any kind of goods or services.

In case the turnover/income of exporting services, exceeds 20 lakhs, you will be compulsorily required to take registration under GST even if exports are zero-rated under GST.

The Exporter will have an option to either pay tax on the output and claim refund of IGST or export under Bond without payment of IGST and claim refund of Input Tax Credit (ITC).

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
1109 Answers
8 Consultations

4.8 on 5.0

Hi

It will be classified as export of services provided the payment is received in foreign currency.

If you're registered under GST, apply for LUT and Export without payment of GST.

Lakshita Bhandari
CA, Mumbai
2254 Answers
81 Consultations

5.0 on 5.0

Hi

It will be classified as export of services provided the payment is received in foreign currency.

The Exporter will have an option to either pay tax on the output and claim refund of IGST or export under Bond without payment of IGST and claim refund of Input Tax Credit (ITC).

Karishma Chhajer
CA, Jodhpur
637 Answers
3 Consultations

5.0 on 5.0

Hi

if payment is received in foreign currency then it will be export of services and no gst to be charged.

Swati Agrawal
CA, Indore
698 Answers
1 Consultation

5.0 on 5.0

if the payment is received in foreign currency, it will be classified as export of services.

You can apply for LUT and Export without payment of GST.

Nikhil Khanna
CA, Mumbai
1428 Answers
19 Consultations

4.8 on 5.0

There are two types of export:

1 export under LTU which is zero rated GST where you don't have to pay GST

2 export where you need to first pay GST and then you can claim refund.

In both cases end result is you don't need to pay any GST.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
574 Answers
5 Consultations

5.0 on 5.0

Hi,

- Services provided by you to foreign companies are treated as export of services. There are two options available to you, either pay GST on revenue and claim refund or apply for LUT and don't charge GST.

- You need to obtain GST registration and apply for LUT.

I may help you in obtaining GST registration.

Thanks

Vivek Kumar Arora
CA, Delhi
1724 Answers
52 Consultations

5.0 on 5.0

Your services qualifies for export of services under GST, if you received your payments in foreign currency and have FIRC for each payment.

You should immediately apply for LUT and post that you can provide services without charging GST. However, you need to file GST returns as usual.

Till the time you don't apply for LUT, you have to charge GST also and then claim refund of the GST

Abhishek Dugar
CA, Mumbai
3576 Answers
162 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA