• GST requirements for Indian Resident earning Income in USA

I have a Question on the nature of reporting for IT claims as an Indian resident earning income in USA. 

- Does the income earned aboard need to deposited directly in an Indian bank account (for GST purposes) or can I retain it in my US bank account and declare it under other income when filing taxes? 
- Do I need a GST number mandatorily if I earn foreign income that's deposited abroad?
Asked 11 days ago in GST from Chennai, Tamil Nadu
Hi,

-GST applicability depends on the nature of income. Assuming it is taxable business income then you need to get the credits in Indian bank account. Also apply for GST and LUT for export without payment of taxes.

- As you are providing service from India then you need to register for GST mandatorily. 

- For IT purpose, global income is taxable for resident in India irrespective where you are crediting income.

- GST depends in place of supply of service.

Thanks
Vivek Kumar Arora
CA, Delhi
1637 Answers
48 Consultations

5.0 on 5.0

As regards the implication of GST, the export of services will be treated as ZERO rates and hence no GST to be levied. However, the exported needs to take a mandatory registration. However, the necessary documents and reporting and filing should be done.
The requirement to repatriate funds into India is there under the FEMA regulations. There are provision under FEMA where there are time limit to get sale proceeds of exports into India. I believe that once the service is exported the money is to be repatriated into India within 9 months from the exports made.
Jasmina Jain Shah
CA, Greater Mumbai
82 Answers
1 Consultation

5.0 on 5.0

Since you are an Indian resident whether you deposit the amount in India or foreign you need to declare your income in IT return as per it's correct nature and you can't just show it as other income.
Secondly since you are providing service out of India its basically export and if your turnover is above 20 lakh you need to apply for GST number and you can apply for LUT for supply zero rated service and then you will not be required 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
496 Answers
4 Consultations

5.0 on 5.0

no need of GST no. for it
Amruta Harshal Baser
CA, Jalgaon
25 Answers

4.9 on 5.0

Hi,

If you are exporting a service you will need to apply for a GST number and can also apply for LUT for zero rated service and then you will not be required to pay any GST.

It is not necessary to move funds to India for taxability purpose. Since you are an Indian citizen, all your global incomes will be taxable in India.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
1377 Answers
17 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

1.Yes,the income earned aboard need to deposited directly in an Indian bank account.

2. It is mandatory. Export is not exempt under GST but it is considered as zero rated supply.
Zero-rated supply does not mean that the goods and services have a tariff rate of ‘0%’ but the recipient to whom the supply is made is entitled to pay ‘0%’ GST to the supplier.

OPTION 1 - UNDER BOND/LUT - Export without payment of GST & Refund of Input Tax Credit.

OPTION 2 - ON PAYMENT OF IGST - Refund of IGST.

Thanks & Regards,
Payal Chhajed
Payal Chhajed
CA, Mumbai
1001 Answers
8 Consultations

4.8 on 5.0

Hi,

1. No need.

2. Yes, you need GST number.
Karishma Chhajer
CA, Jodhpur
540 Answers
3 Consultations

5.0 on 5.0

Hi,

GST is mandatory on interstate supply. Export of goods/services is deemed as interstate supply as per GST Act.

Hence you have to obtain GST registration on Income earned outside India. The GST will have to be paid monthly and subsequently be claimed as refund.
Also you can opt for LuT bond to avoid blocking of funds. Under LuT GST shall not be paid.

W.r.t to Income Tax, Income earned accross the globe by and Indian resident is taxable. The Amount deposited in Indian A/c of Foreign A/c is irrelevant as you need to disclose them anyway.
Ideally we suggest our clients to route transactions from Indian A/c as the ROI is higher plus it is easy to keep a track on transactions.

Also I'm visiting Chennai in first week of December for Audit. We can catch up and discuss.

Hope your queries are resolved.

Thanks & Regards,
Siddhant Shah.
Siddhant Shah
CA, Mumbai
101 Answers

5.0 on 5.0

GST depends on what is the type of income you are earning, whether you are providing services or whether you are selling goods.
Priyank Kumar
CA, Agra
48 Answers

5.0 on 5.0

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