• Should I charge GST for US customers?

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.
Asked 6 years ago in GST

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.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

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

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

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

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hey,

Yes, you have to charge/ pay GST for export of services and then claim a refund. Although you can make a taxfree export by applying for a Bond/ LUT.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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