If service is export of services and turnover is within registration limit of 20 lakhs , then GST registration is compulsory?
There is confusion because of below :
- Notification No. 10/2017 – Integrated Tax dated 13/10/2017 specifically exempts GST registration for inter state supplies of taxable services if turnover below 20 lakhs (since export is inter state supplies)
- FAQ published by government dated 22/12/2017 says it is compulsory to register for GST even if below threshold limit of 20 lakhs
20 May 2022
As per my opinion, according to section 7(5)(a), supply of services when the supplier is located in India and the place of supply is outside India, shall be treated as inter-state supply.
Notification No. 10/2017 – Integrated Tax exempts the persons making inter-state supplies of services, not exceeding Rs.20 Lakhs in a financial year, from compulsory GST registration.
If the person supplies ‘Export of SERVICES’ within the threshold limit, and the place of supply is outside India, then he need not to take GST registration.
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