IGST will be applicable on it at 18%.
We are registered in Uttarakhand, India as a coaching institute. We have online courses on our websites. Suppose a person outside India buy that course online and enter a place of supply as outside india. The transaction has been taken place in INR through the PayU Money payment gateway. Then how do we charge GST in that and what should the place of supply. What should be GST rate and Place of supply in GST invoice and what type(CGST or IGST or SGST)
IGST will be applicable on it at 18%.
In your case there can be two situations:
1) Where you are providing live sessions - It will be treated as Export of Service and you have two options whether to pay IGST or do the transaction without paying tax under LUT (Letter of Undertaking) (Proportionate Refunds available with conditions)
2) Where you are providing recorded classes and e-books etc. This will come under OIDAR (Online Information Database Access and Retrieval Services). In this case you will have to determine whether Place of Supply is in India or outside India. If any of the two conditions are fulfilled then place of supply will be considered to be in India.
a) The location of address presented by the recipient of services through internet is in the taxable territory.
b) The credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory
c) The billing address of the recipient of services is in the taxable territory.
d) The internet protocol address of the device used by the recipient of services is in the taxable territory.
e) The bank of the recipient of services in which the account used for payment is maintained is in the taxable territory.
f) The country code of the subscriber identity module card used by the recipient of services is of taxable territory.
g) The location of the fixed land line through which the service is received by the recipient is in the taxable territory.
If it is in India then taxable - IGST will have to be paid
If it is Outside India then Export of Sevice - OPtions available to pay IGST or don't pay IGST under LUT. (Proportionate Refunds available with conditions)
Hope this helps
In reference to your query please note that taxability as well as chargeability would depend on the place of supply.
As per section 13(2) of the IGST Act 2017, the place of supply of service shall be the location of the recipient (Student) if the address of the student is known to the training/coaching service provider. If the address is not known, the place of supply shall be the location of training/coaching service provider, i.e. Uttarakhand in this case.
On determination of above, the type of tax would be identified.
Based on the facts given, that the amount is received in INR itself, the transaction, in case the address of the student is available, would not qualify as export, since a key condition is that "the payment for such service has been received by the supplier of service in convertible foreign exchange". Therefore, in this scenario, IGST would be payable.
Where the address of the student is not available, in that the place of supply being your location only, CGST & SGST would be payable.
The rate of tax for the service aforementioned is 18%.
Please advise in case of any other clarification.
Thanks & Regards,
CA Aditya Dhanuka.
- Place of supply would be location of recipient of services.
- GST rate is 18%. Tax payable would be IGST.
IGST would be charged @18%. Place of supply would be outside India.
Have you checked the PayU money account.
They might be paying you in Foreign currency and PayU money would be converting it in INR.
We have handled such clients I think you must first check with PayU money.
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