• 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 9 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
2217 Answers
24 Consultations

5.0 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
3056 Answers
139 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
1074 Answers
4 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, Mumbai
1044 Answers
4 Consultations

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
1429 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
1486 Answers
16 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
2520 Answers
112 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
169 Consultations

5.0 on 5.0

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