How do you receive the money? In case it is in foreign currency only, such services provided by you would be zero rated supplies and thus exempt from tax.
I am running Internet Marketing Services, which caters services like Search Engine Optimization & Website Development etc to companies and individuals in USA. And also, i am planning to run an e-commerce store, in which i will be selling products to customers in USA. Last year IT returns was 7 Lakhs. This year i should have earned not more than 2 lakhs. My question now is : 1. Should i charge GST to my customers who are from USA? 2. If so can i have some invoice format please a) services and b) for selling products online.
How do you receive the money? In case it is in foreign currency only, such services provided by you would be zero rated supplies and thus exempt from tax.
I normally receive my payments through PayPal, where PayPal transfers the money to my current account in INR. Otherwise, i might ask client to do a wire transfer after converting from USD to INR from their end. So how will this transaction be accounted? Is it considered as foreign currency receipt. And do i come under GST for the same. Would appreciate if you could clear my doubts.
First question already discussed over a phone consultation.
With respect to follow up question:
If you are getting FIRC copy for your payments, that means your transaction is in foreign currency. Ask paypal to arrange FIRC copy of you
If your client will do wire transfer after converting the money in INR then it will not be a foreign currency transaction
If you can get FIRC copy from PayPal, it would solve the purpose.
In the second case- No, you should receive foreign currency in your account to qualify the supply as zero-rated.
Hello,
Yes, you will have to first get yourself registered under the GST Act and then start 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