GST for software development company

Dear Sir,

Hope you are doing well !!

We may assist you in entire procedure.

Hi

If remittance from foreign clients ia received in foreign currency, it will be classified as zero rated supplies. Hence, no GST shall have to be charged or paid.

You need a GST registration if your aggregate turnover ( Indian + foreign clients) exceeds 20 lacs a year.

We may assist you with registration, filings, accounts and other compliance.

HI,

We can explain you in detail all of the procedure.

Thanks

Damini

Hello,

The software development services provided to foreign clients would be considered as Export Services if the consideration is received in convertible foreign exchange. Export services could be supplies by under LUT without payment of any GST(0%). The services to domestic clients would be chargeable to GST.

GST Registration would be required if the aggregate receipts from both local and international clients exceed the threshold of Rs. 20 Lakhs in any F.Y.

I hope this answer satisfies your requirements. For further understanding, you can contact us directly or take a phone consultation.  

Regards,

CA Hunny Badlani

- Software development, upgradation,designing etc.is treated as services under GST.  Supply of services to international clients is an export of services and treated as zero-rated services. Under zero-rated services, you have two options for payment of taxes, export without payment of taxes after applying LUT and other export with payment of taxes and later on claim refund of payment of taxes. In both the cases, ITC is available. You can claim refund of ITC in case of LUT also.

- For supply within India, you need to pay tax @18%.

It's not 0% by default you need to apply for LUT and have you crossed GST threshold limit?

I handle some clients who deal with foreign clients, if you need I can assist you.

We can discuss the same in detail.

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

Thank you.

I can handle accounts through online softwares. The main advantage of it will be you can have access to real time accounts reporting.

GST for international clients will be under export od services provided you satisfy all conditions therein. But you have to register and file the return .

You can raise invoice for international clients without charging GST. For this you have to submit LUT(Letter of Undertaking). This is an online form available on GST website. This is a simple form and is to be submitted online.

On Indian invoices you will charge GST at the rate applicable to your product.