• GST liability for export of services where the aggregate turnover is less than 20 lakhs

Dear Madam/ Sir

We are providing technical consultancy services from India, to the Pharmaceutical industry based in the UK. Do we have to register for GST, even though the annual turnover for this service is less than 20 lakhs?

Many thanks in advance for the guidance.
Asked 10 months ago in GST

Yes, for export of services you have to register even if turnover is less than 20 lakhs. You have to execute LUT for export of goods without payment of GST 

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

Hello,

 

The threshold for GST registration is an annual turnover of 20 lakhs, and businesses with a turnover below this limit are not required to register for GST.

 

There are some exceptions to this rule, such as businesses that are providing services to clients outside India. In such cases, GST registration is required even if the turnover is less than 20 lakhs.To export goods without paying GST, you need to submit an LUT (Letter of Undertaking) to the relevant authorities.

 

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

 

Shubham Goyal
CA, Delhi
177 Answers
2 Consultations

5.0 on 5.0

 

According to a government FAQ released on Twitter and dated December 22nd, 2017, export services are interstate taxable supplies and must have GST Registration.

Shubham Goyal
CA, Delhi
177 Answers
2 Consultations

5.0 on 5.0

Hi

You are not required to register yourself in GST since your annual turnover is less than 20 lakhs provided that this is the only turnover you have.

If you have other receipts falling under GST and your turnover exceeds 20 lakhs then you will have to register under GST.

Hope this helps.

Altamush Zafar
CA, Kanpur
38 Answers

5.0 on 5.0

Yes its mandatory to register under GST and take LUT for filing GST Return and not to pay any tax.

 

You can refer to Section 22 of CGST Act which required every person to register when irrespective of turnover limit if he is engnaged in inter state supply and inter state supply definition is given in GST which includes export

 

There is an amendment proposed by last GST Council to allow interstate trade without GST Registration for person having less than 20 lacs turnover but it is yet to be notified which is expected after 1st October,23

Vishrut Rajesh Shah
CA, Ahmedabad
924 Answers
37 Consultations

5.0 on 5.0

Hello,

 

Please note that all taxable persons whose turnover exceed exemption limit of Rs.20Lakhs (Rs.10 Lakhs in certain cases) has to take registration under GST.

But As per the section 24 of CGST Act 2017 , certain categories of persons shall be compulsorily required to be registered under GST, even if their aggregate turnover is below specified exemption limit and are exempted from GST registration under section 22(1) – section 24(1) of CGST and SGST Act.

 

Interstate supply of goods by taxable person is required to be registered under GST irrespective of turnover limit. Export being classified as an inter state supply, you would be liable to take registration even if you do not breach the threshold.

 

Please advise in case of any further clarifications.

 

Thanks & Regards,

CA Aditya Dhanuka.

Aditya Dhanuka
CA, Kolkata
83 Answers
5 Consultations

5.0 on 5.0

In case of inter-state supply of taxable services, threshold limit for GST registration limit is Rs.20 lacs.

Notification No. 10/2017-IGST

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4810 Answers
1013 Consultations

5.0 on 5.0

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