• Is GST applicable for foreign export(software services) of more than 20 lakhs in a year

I do software services for a Singapore client from India. 
I was under the assumption that exports won't come under GST. 
For the last financial year, I billed my client more than 20L (not in a single payment but across multiple months)
Now my new auditor says that I need to apply for GST, and since I didn't get any prior approval, I need to pay GST for 20L+, not just for excess of 20L but whole 20L+
Is it true? I saw some online replies that even if it is more than 20L, there is no need to do GST registration for software services export.
Also, note that since I am a single-person business/consultant and it's a software service, I don't need any GST-related credits.
Asked 4 months ago in GST

You are required to obtain GST registration if the aggregate turnover from supply of services exceeds Rs. 20 lacs in a financial year

Apply for GST registration and start filing the returns 

Export of services is treated as zero-rated. For export without payment of tax, all conditions for export should have been fulfilled alongwith the application of LUT. LUT is applied in advance for each financial year.

If you have fulfilled all the conditions for export of services then for previous year non-compliance you can contest on the basis of facts

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

GST registration will be applicable to you. Exports are covered under zero rated services. Although credits will not be availed but GST return will have to be filed quarterly. Pls apply for registration ASAP.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

5.0 on 5.0

  1. GST Registration: You must register for GST since your annual turnover exceeds Rs. 20 lakhs.

  2. Export of Services: Your software services exports are zero-rated under GST, meaning no GST is payable on them.

  3. Compliance: Apply for GST registration immediately and file the required GST returns. For exporting without GST payment, submit a Letter of Undertaking (LUT) annually.

  4. Past Non-Compliance: If you've already exported services without GST registration, you might face compliance issues. However, you can contest this by showing that your services qualify as zero-rated exports.

Please let me know if you need any other clarification!

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

Shubham Goyal
CA, Delhi
212 Answers
4 Consultations

5.0 on 5.0

Yes it is liable for GST registration and also liable for GST if you exceed Rs. 20 lakh.

 

It is only not taxable if you have a letter of undertaking from GST department.

 

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
4272 Answers
97 Consultations

5.0 on 5.0

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