• Working as an Independent Contractor for US company, GST issue?

I work from India as an independent contractor for one US company. Till now I had thought there is no GST implication for me. They pay me a fixed monthly fee.

Then I read that even freelancers have to register under GST. Does this apply to me?

How do you even file returns as a free lancer since US company won't send any GST documents.
Asked 6 years ago in GST

Hi,

Yes, you are liable to register under GST.

In return of income, you have to give details of your purchases and sales. Details of US company is not mandatory.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Export of services is treated as inter state supply under GST. You are required to take registration under GST.

For answering rest of your questions, we would need to know the following:

1. Does the US company has place of business in India?

2. In which currency are you paid?

3. What services are you providing?

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Thanks for the details.

Services provided by you are considered as zero rated supplies under GST.

You are required to take registration and file 3 returns monthly and 1 return annually.

You don't require any GST documents from the US company.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Hello,

Apply for a GST registration. Then you shall have to submit a bond for export of services without charging GST.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

It's advisable that you take GST registration now and file the returns.

In case penalties are levied, you will receive a show cause notice.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

I totally agree with this view. Even I have the same view. But one thing is clear that both the interpretation are possible and you never know how tax office is going to interpret this.

Hence, I suggest all my clients to take registration because it's better to be in conservative side.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

I agree with the author's point of view.

But, the thing is that matters in GST are currently debatable. So it's better to be on a safer side. That is why we would advise our clients to take registration.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

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