export of service
This query is : Resolved
02 July 2017
Export of service mandatory to registeration under gst even turnover below 20 lacs
There is a notification on 1 July 26/2017 that exporter can claim ITC by a prescribed application
Thanks in Advance
02 July 2017
anyone please clarify that registeration is mandatory for service exporter having turnover below 20lacs ??????
24 July 2024
Under the GST regime in India, any entity providing services (including export of services) is required to register for GST irrespective of their turnover. This means that even if your turnover is below INR 20 lakhs (INR 10 lakhs for special category states), if you are exporting services, you must register for GST.
Here are the key points regarding export of services under GST:
1. **Registration Requirement**: Exporters of services are mandated to obtain GST registration, regardless of turnover. This registration allows you to comply with GST laws and claim input tax credits (ITC) on your inputs.
2. **Export of Services**: When you export services (i.e., provide services to a recipient located outside India), such supplies are considered as zero-rated under GST. Zero-rated means that you do not charge GST on the export of services, but you can claim refund of any GST paid on inputs (like goods or services used to provide the exported service).
3. **ITC Refund**: If you have paid GST on inputs (goods or services) used to provide exported services, you can claim a refund of the GST paid. This refund process involves filing a prescribed application with the GST authorities. The notification you referred to (likely Notification No. 26/2017 dated 1st July 2017) specifies the procedure and conditions for claiming refund of accumulated input tax credit.
4. **Compliance**: It is important to comply with GST regulations regarding export of services, including proper invoicing and documentation. This ensures that you can substantiate your claims for refund of input tax credit.
5. **Prescribed Application for Refund**: The process for claiming refund of accumulated ITC for exporters involves filing GST RFD-01 form on the GST portal. This form needs to be filed along with required supporting documents to substantiate the claim.
6. **Threshold for Registration**: The threshold exemption of INR 20 lakhs (INR 10 lakhs for special category states) applies primarily to suppliers of goods. Export of services, however, mandates GST registration irrespective of turnover.
To summarize, if your partnership firm is involved in the export of services, GST registration is mandatory, and you can claim refund of input tax credit on goods or services used to provide the exported services by filing a prescribed application with the GST authorities. Ensure compliance with GST laws to benefit from these provisions effectively.
Here are the key points regarding export of services under GST:
1. **Registration Requirement**: Exporters of services are mandated to obtain GST registration, regardless of turnover. This registration allows you to comply with GST laws and claim input tax credits (ITC) on your inputs.
2. **Export of Services**: When you export services (i.e., provide services to a recipient located outside India), such supplies are considered as zero-rated under GST. Zero-rated means that you do not charge GST on the export of services, but you can claim refund of any GST paid on inputs (like goods or services used to provide the exported service).
3. **ITC Refund**: If you have paid GST on inputs (goods or services) used to provide exported services, you can claim a refund of the GST paid. This refund process involves filing a prescribed application with the GST authorities. The notification you referred to (likely Notification No. 26/2017 dated 1st July 2017) specifies the procedure and conditions for claiming refund of accumulated input tax credit.
4. **Compliance**: It is important to comply with GST regulations regarding export of services, including proper invoicing and documentation. This ensures that you can substantiate your claims for refund of input tax credit.
5. **Prescribed Application for Refund**: The process for claiming refund of accumulated ITC for exporters involves filing GST RFD-01 form on the GST portal. This form needs to be filed along with required supporting documents to substantiate the claim.
6. **Threshold for Registration**: The threshold exemption of INR 20 lakhs (INR 10 lakhs for special category states) applies primarily to suppliers of goods. Export of services, however, mandates GST registration irrespective of turnover.
To summarize, if your partnership firm is involved in the export of services, GST registration is mandatory, and you can claim refund of input tax credit on goods or services used to provide the exported services by filing a prescribed application with the GST authorities. Ensure compliance with GST laws to benefit from these provisions effectively.
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