Hi, I own a Consulting agency. I deal with mostly US Clients. Will GST be applicable to the pay I receive from these US clients on a monthly basis? It does cross the 20lk limit set for GST. But, I heard that GST won't be applicable to payment received from the US. Please help me understand how it works? If it does apply, would I be liable to pay 18% on every pay I receive? Should I collect it from the client or how does it work? What is your opinion on Valiksearch for handling this process for me? Do you suggest any other similar service?
GST is not applicable in your case but you should register in GST and issue GST invoices. No need to charge 18% GST.
I am a chartered accountant and provide complete back end support to the client personally. I can provide you full GST and accounting support at reasonable charges.
In case of any query, please feel free to connect.
Kind Regards
Sohan Singh Rawat
Chartered Accountant
Dear Sir,
Hope you are doing well !!
The above services will be treated as export of services.
Exports are considered as inter state supplies in the new GST regime. Accordingly, Exports are done by the following two methods:
a.Export of goods/services with payment of GST-IGST is applicable on Export of goods/services and input tax on various purchases could be set off against the output tax and the balance could be claimed as refund from tax authorities.
b.Export of goods/services without payment of GST-This is popularly called zero rated .Application has to be made to the assistant commissioner of GST in form GST RFD-11 and LUT/bond has to be furnished for claiming zero rated exports. Commissioner after scrutiny of application gives his acceptance in writing and the LUT is valid for one year from the date of acceptance.the tax payer can make zero rated exports during the said one year period. the input tax on all purchases could be claimed as refund from tax authorities in case of zero rated supplies.
-You can supply these services under LUT and no GST would be charged on your supplies.
It is advisable to take a phone consultation for detailed discussion.
Yes GST would be applicable.
However you save it if you apply for LUT under GST.
If you dont take LUT you need to pay 18% GST but you can get refund for same.
Yes you can but since you will get its refund you must not charge it separately as its not your cost.
You can take services from me. I can help you with same in a seamless manner.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
Since it is export of services where consideration is received in foreign currency, it will not be chargeable to GST.
However, since your turnover exceeds 20 lacs, you are liable to GST registration. Once registration is done, you can apply for LUT and export services without payment of taxes.
We may assist you with the entire process and compliances.
Hello,
GST REgistration would be required since the gross receipts have crossed the threshold limit of Rs. 20 Lakhs.
Regarding GST Liability, Since this would be considered as Export of Services, you have two options(Assuming you receive Foreign Currency from your Clients)
First, to apply for LUT for a F.Y. and then supply services without payment of IGST on such services.
Second, supply such services with payment of IGST at 18% without LUT and then later claim the refund of such IGST paid.
I hope that this answer satisfies your requirements. For further understanding or complete Capital Gain calculation, you can contact us directly at or take a phone consultation.
Regards,
CA Hunny Badlani
Hi,
From your question, it is clear that the service recipient is located outside India. However, it is not clear whether you are receiving the money in convertible Foreign Exchange (i.e in USD). If you are receiving the same in USD, then it is an Export of Service. Though GST is applicable, Export of Service is Zero Rated. You need to register for GST and file Letter of Undertaking for claiming the Zero rate benefit.
Regarding using the services of online portals for regular filing, it's entirely your choice. I always suggest to take help of a Professional for regular works
HI,
No GST will not be applicable on the export of services. But there is a process of applying to LUT for claiming it to be exempt.
Thanks
Damini
