• GST rules for freelancers working with American client

I am a software developer, and work with American clients, I receive payments using transfer wise .com which actually credits the INR into my account using NEFT. What is my eligibility for GST if the total amount that I receive during a financial year exceeds 40 lac ?
Asked 8 months ago in GST

Hi

 

Although you receive the remittance in your account in INR, the client would have paid in a foreign currency. Request transferwise for foreign inward remittance certificate (FIRC).

 

If you get FIRCs, such supplies shall be categorised as zero rated supplies.

 

GST registration shall be mandatory once you reach threshold of 20 lacs.

Lakshita Bhandari
CA, Mumbai
5460 Answers
539 Consultations

5.0 on 5.0

40 lacs limit is for supplies of goods. Since you are a supplier of services, 20 lacs limit shall apply.

 

You need to register within 30 days of crossing the threshold of 20 lacs.

Lakshita Bhandari
CA, Mumbai
5460 Answers
539 Consultations

5.0 on 5.0

Dear Sir,

Hope you are doing well !!

As per the exemption specifically provided to Service providers only through notification No. 10/2017, A service provider is required register under GST and file return only if their aggregate turnover exceeds Rs 20 lakhs.

You are not required to do GST registration unless the aggregate turnover/receipts crosses the limit of Rs 20 lakhs.

Payal Chhajed
CA, Mumbai
5077 Answers
152 Consultations

5.0 on 5.0

Threshold limit for registration (For those engaged in exclusive supply of goods) is Rs. 40 lakh.

 

No, it is no mandatory register a proprietary to apply for GST.

 

You can use your home address for the same.

Payal Chhajed
CA, Mumbai
5077 Answers
152 Consultations

5.0 on 5.0

Hi

 

Gst registration limit for a service provider is 20 lakhs.

Limit of 40 lakh is applicable for supply of goods not on supply of services.

Karishma Chhajer
CA, Jodhpur
2387 Answers
20 Consultations

5.0 on 5.0

Hi

 

You can get gst registration on your residential address.

Karishma Chhajer
CA, Jodhpur
2387 Answers
20 Consultations

5.0 on 5.0

Hello,

 

Yes, you need to register for GST since your gross receipts would cross Rs. 20 Lakhs threshold limit applicable to service providers.

If transferwise issue you FIRC for the foreign currency received by them, your services would be considered Export Services and you can supply such services without payment of GST under LUT.

I hope this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2555 Answers
9 Consultations

5.0 on 5.0

No need to register proprietory.

Registration is mandatory once you cross the threshold of Rs. 20 Lakhs. (Rs. 40 Lakhs threshold is applicable to the supplier of goods)

Hunny Badlani
CA, Madhya Pradesh
2555 Answers
9 Consultations

5.0 on 5.0

HI,

 

Please refer to the replies below:

 

- An individual can apply for GST registration.

- Since you are from service industry, the threshold for GST registration is not 40Lakhs. For you it will be 20Lakhs.

- To claim that your services qualify for export and you are exempt from paying GST, you need to ensure that you are able to get FIRC from your bank for all the payments. Without FIRC in place, your services will always be under exposure of getting challenged and Tax man would not qualify them as export leading you into vicious circle of GST payments on the sales. I ma highlighting this point because when you receive funds through transferwise, the bank does not get Foreign convertible currency and hence they deny from issuing FIRC. So please look into this once.

 

Thanks & Regards,

Damini

 

 

Damini Agarwal
CA, Bangalore
384 Answers
31 Consultations

5.0 on 5.0

Dear Sir,

 

Indian companies providing software services to overseas clients are liable to pay GST @ 18%.

In case turnover exceeds threshold limit, there is need for compulsory registraion under gst. 

 

 

Thanks & Regards

Shiv Kumar Agarwal

Shiv Kumar Agarwal
CA, Delhi
475 Answers
74 Consultations

5.0 on 5.0

The turnover limit for supply of services for registering in GST is 20 lacs. You will have to take registration in GST. The registration will be based on your PAN. The registration is mandatory when turnover exceeds the threshold limit.  So if your contract is only for 3 months you may not take registration.

Ruchi Goel Anchal
CA, Gurgaon
443 Answers
5 Consultations

5.0 on 5.0

Yes you can still claim it as export and after applying LUT you won't have to pay any GST.

By the way the limit would be Rs. 20 lakh since you are providing service and not 40 lakh.

Also as far as i know transfer wise issue FIRC so there wont be any issue.

 

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
3791 Answers
45 Consultations

5.0 on 5.0

There is no such thing as separate registry of sole proprietorship to register under GST.

You need to register once the turnover exceeds Rs. 20 lakh.

Naman Maloo
CA, Jaipur
3791 Answers
45 Consultations

5.0 on 5.0

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