Madam/sir My age is 18 years . I just got my pancard also. I have finshed my 12th grade and will pursue my btech in computer science. I want to earn to support my studies so my father will not get burden for the same as farming and our small business is slack. i want to start export services -----selling program codes , game modules , hosting game modules in mincraft game server totally online in which who play game will buy my module / ranks for say $2 , $5 etc. I will receive payment in paypal from the buyers abroad as i will host it on foreign server. 1) My turnover will be below 20 lakhs. Should i Compulsory Register in Gst. ? 2) If I Register then please tell me how to raise invoice ? as the amount from paypal will be transfered in my saving account. should is raise invoice for small amounts of $2,$4 etc or raise single invoice on amount credited in my account . please tell how to raise invoice on basis of paypal entries. 3) if i export service with payment of tax then igst should be applied on amount credited + 18% ? then claim refund.
If you are doing it via any website which is registered in India and collecting TCS under GST then you need to register under GST. As you are saying you will do it on foreign sites which wont be registered in India so no need to register for GST till you cross 20 lakh.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
assume that i register in Gst .
Dear Sir,
Hope you are doing well !!
You need to get GST registration only if your turnover crosses the limit of RS 20 lakh.
If you are registered under GST and if you dont have any ITC then also you are not required to pay any GST for export if you apply for LUT.
You should raise bill for each sale as you receive in Paypal.
We can have a phone consultation and discuss your tax planning.
Hello,
There would be no need to compulsorily register under GST if the turnover is below Rs. 20 Lakhs.
If you voluntarily register under GST and these services are considered as Export Services, you can supply such services under LUT without payment of IGST.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You would be required to raise an invoice against each supply of service.
Hin
As per GST Act once your turnover crosses 20 lakh then you need to take registration.
You need to raise invoice for each payment.
Hi
1. You are not required to get a GST registration till your turnover crosses 20 lacs.
2. Invoice should be separately raised for each remittance.
Once registered under GST, you can apply for letter of undertaking. Then, you may export without payment of GST. (In your case it would be classified as zero rated supplies since you will be receiving the payment in foreign currency)
Yes, you need to raise invoice for every remittance.
After GST REGISTRATION, apply for LUT.
So you can export without payment of igst.
Hi
In this case you are receiving foreign currency therefore export will be zero rated after gst register you can apply for LUT & export without paying gst.
Hi,
1) For GST registration, threshold limit of turnover is Rs. 20 lacs. Once you cross the limit, you will be liable to obtain GST registration. As you are in to export, there are two options either export with payment of taxes or without payment of taxes. Under the option with payment of taxes, firstly you have to pay GST and then you can claim refund. Under the second option, you have to apply for LUT before receiving first payment from overseas clients after registration. LUT is valid for one F.Y. It is advisable to apply in the starting of the year.
2) Paypal also generate invoices and provide monthly reports which is sufficient.
3) Yes
4) Open current account for business transactions.
You will not be required to register in GST as your turnover is below 20 lacs.
If you register voluntarily, you can export by filling LUT( online declaration) without payment of GST.
