• GST registration on foreign currency

Hi, I am a sole proprietor of business in WB. I am Australian citizen with OCI, living in India as a tax resident (more than 180 days per year). I earn all my income in foreign currency (AUD) which is paid into Australian bank account. I then transfer my earning into a business account in WB and it is converted to INR. I have one contractor in WB who invoices me here once per month for data entry in INR. I pay them from my Indian Business bank account. My annual turnover is less than 20 Lakhs. Do I need to register for GST? and if so do I need to pay GST on foreign income, my understanding is that I do not.

Thanks
Asked 21 days ago in GST

In my opinion, from a GST perspective, you are doing exports of goods or services from India as you are an Indian resident for taxes. 

GST registration will be mandatory irrespective of the turnover limit if you export goods. 

However, if you are involved in the export of services, GST registration is not mandatory if your aggregate annual turnover does not exceed Rs. 20 Lakhs in a financial year. 

Puja Sharma
CA, Jaipur
33 Answers

Not rated

No need to register under GST till income exceeds Rs. 20 Lacs.

 

Once income exceeds Rs. 20 Lacs you need to register take LUT  and no need to pay any tax file NIL Return

Vishrut Rajesh Shah
CA, Ahmedabad
804 Answers
30 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

You would be required to get GST registration only if your turnover crosses the limit of RS 20 lakh.

 

Also, after getting GST registration, You won't be required to pay any GST provided you would be having LUT for export of services.

 

It is advisable to take a phone consultation for detailed discussion.

 

We may assist you in entire procedure.

Payal Chhajed
CA, Mumbai
5159 Answers
223 Consultations

5.0 on 5.0

Dear Sir,

 

In reference to your query, your understanding is correct that you do not need to pay GST on foreign income. However this is subject to the condition that in order to earn such income, no supply of service is being provided from India. If this be the case, then the transaction would qualify as export of service and you would be required to take GST registration and comply with the provisions and procedures.

However, further to the above in case of provision of services, if your aggregate annual turnover does not exceed Rs. 20 Lakhs in a financial year, GST registration is optional.

In case GST registration is mandatory / taken, in that case the option of LUT can also be explored wherein the requirement of payment of GST would be obviated.

 

Please advise in case of any further clarification.

 

Thanks & Regards,

CA Aditya Dhanuka.

https://www.linkedin.com/in/aditya-dhanuka-69824451/

Aditya Dhanuka
CA, Kolkata
56 Answers
2 Consultations

5.0 on 5.0

Hi,

Since your turnover is less than 20 Lakhs you don't need GST registration even when you are exporting services.

And in the situation where your turnover exceeds 20 lakhs you will need registration and if you apply for LUT (recommended) you wont have to pay GST on your services.

 

Hope this is helpful

Regards

Altamush Zafar
CA, Kanpur
33 Answers

5.0 on 5.0

- Are you into the business of supplying goods or services?

- Assuming you are supplying services then threshold limit for GST registration is Rs.20 lacs.

- If turnover exceeds Rs. 20 lacs then GST is mandatory. The consideration should get credited directly into your Indian account and FIRC should bear the name of the remitter to whom the invoice is raised.

 

For detailed discussion, you may opt for phone consultation.

Vivek Kumar Arora
CA, Delhi
4432 Answers
550 Consultations

5.0 on 5.0

No you need not register under GST considering that your income from business is below Rs. 20 lakh a year.

 

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

Thank you.

Naman Maloo
CA, Jaipur
4026 Answers
64 Consultations

5.0 on 5.0

Hi,

 

GST registration is not required if your turnover is less than Rs. 20 Lakhs. 

 

Regards

Prerna Peshori
CA, Pune
60 Answers

5.0 on 5.0

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