GST for affiliate income via foreign source
This query is : Resolved
28 January 2022
Hi,
My gross receipt has crossed 30 lakhs this year and 20+ last year.
But I never got any GST number.
I own affiliate websites/web apps, I think I come under OIDAR export category[ https://www.meteorio.com/gst-oidar/ ]
100% of my income is from foreign remittances. Am I looking at penalty here?
please suggest what should I do ?
My gross receipt has crossed 30 lakhs this year and 20+ last year.
But I never got any GST number.
I own affiliate websites/web apps, I think I come under OIDAR export category[ https://www.meteorio.com/gst-oidar/ ]
100% of my income is from foreign remittances. Am I looking at penalty here?
please suggest what should I do ?
28 January 2022
Maybe yes. Since your turnover exceeded 20 lakhs and you were engaged in services then GST registration was mandatory. Since registration was mandatory a lot of compliances have been missed out. Suggest you to engage a professional so that he guides you properly from now onwards
29 January 2022
I agree with the Experts Opinion
31 January 2022
If you are providing OIDAR service, you were liable to take the registration from the 1st day of April of the financial year in which you crossed the threshold limit i.e. 20 lakh. As you mentioned, service is being provided to recipient located outside India, it shall be zero rated supply. But as you didn't comply the provision of GST act, 2017, department may ask to pay GST liability with interest any time if your case comes under scrutiny.
As current financial year is still going on, it advisable to take the registration immediately and declare all the revenue of current financial year in your first return. You will be liable to make the payment of GST with interest on the revenue generated before registration. You may claim the refund of GST thereafter. After taking registration, file letter of undertaking and do the export without payment of tax. Additional General penalty of delay in registration i.e. 20,000/- may be imposed.
As current financial year is still going on, it advisable to take the registration immediately and declare all the revenue of current financial year in your first return. You will be liable to make the payment of GST with interest on the revenue generated before registration. You may claim the refund of GST thereafter. After taking registration, file letter of undertaking and do the export without payment of tax. Additional General penalty of delay in registration i.e. 20,000/- may be imposed.
31 January 2022
Thankyou so much for replying.
31 January 2022
@r b yadav sir can’t we claim back the gst if we come under 0%
31 January 2022
Kaushik Ji, You can claim the refund after making the payment . I mentioned the same thing in my reply. Please refer the line "You may claim the refund of GST thereafter". Please check
31 January 2022
Ohh Ok Sir but I have also heard that refund ane main problem hota ha. But think ha sir I will go via this route only.
One of the CA is also suggesting me to form an LLP and get a GST registration on that LLP and not show anything from my own personal account.
Which is the correct route ?
One of the CA is also suggesting me to form an LLP and get a GST registration on that LLP and not show anything from my own personal account.
Which is the correct route ?
31 January 2022
the transaction done through bank account can be tracked any time. I suggest to deposit and claim the refund. Refund can be received within 2 month. If you are working individually, I don't suggest to create any LLP. It may create additional burden of compliance. But if you still want to hide the previous income by separating new account from the previous one, I suggest to create normal partnership instead of LLP to lower your compliance.
if you want any further assistance, you may drop me an email at cmarajyadav@gmail.com
if you want any further assistance, you may drop me an email at cmarajyadav@gmail.com
31 January 2022
It won't matter whether you form a LLP or not. The transactions have already been done in your name and entries have come in your bank account. The formation of LLP is not a good advise. It will further increase your unnecessary compliance.
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31 January 2022
Right LLP formation would increase compliance and I thought it was unnecessary.
Thankyou RB Yadav Sir I will get in touch.
@ Altamash sir thankyou for your good advice, I will consider to just submit the GST as required and claim refund.
Thankyou RB Yadav Sir I will get in touch.
@ Altamash sir thankyou for your good advice, I will consider to just submit the GST as required and claim refund.
01 February 2022
Take GST Number and Apply for LUT and Make Invoice showing as Export without payment of Tax , so there wont be any question of Refund
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01 February 2022
Yes Bhavik sir this is exactly my CA suggested, I was just worried about past transactions. What if gov sends a report on that !
01 February 2022
There are defences but if notice comes you must be ready for litigation
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