Ashok Kumar S Kamath (Accounts Manager) (102 Points)
03 January 2018We are the Consultnats and we want to bill one of our Kuwait Client our Prof. Service Charges. Should we collect our normal rate GST 18% to client ? as we did our normal clients with in India. Pls advice
Manas Das
(1431 Points)
Replied 03 January 2018
Ashok Kumar S Kamath
(Accounts Manager)
(102 Points)
Replied 03 January 2018
Sir, thanks for your reply. Can you pls explain how we will take the refund of IGST or should we take the ITC Credit of IGST ?
Manas Das
(1431 Points)
Replied 03 January 2018
Deepak
(Chartered Accountant)
(254 Points)
Replied 03 January 2018
Sir,
You need not charge GST. As per Section 13 of IGST Act, 2017(for reference check https://www.cbec.gov.in/htdocs-cbec/gst/index) the place of supply of service normally shall be the location of recipient of service. Further, in your case if you are not providing any of service mentioned under sub section 3 to 13 of Section 13 of IGST Act, 2017 then the location of recipeint that is kuwait will be the place of supply and you need not charge GST.
However, under GST we also have an option to pay GST on the said service and claim refund for the same.
Manas Das
(1431 Points)
Replied 03 January 2018
Deepak
(Chartered Accountant)
(254 Points)
Replied 03 January 2018
It is not mandatory. Please refer Section 16(3) of IGST Act, 2017 for reference.
Deepak
(Chartered Accountant)
(254 Points)
Replied 03 January 2018
Sir,
The section is read as under
SECTION 16(3) A registered person making zero-rated supply shall be eligible to claim refund under either of the following options, namely:––
(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim the refund of unutilized input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.
Further, the option in general language refer to the phrase that the assessee at his discretion can decide whether to make export with payment or without payment.
Any query further please let me know.
Ashok Kumar S Kamath
(Accounts Manager)
(102 Points)
Replied 14 February 2018
Dear Deepak Pls clarifiy the treatment supposing if we are collecting the IGST from the party.
CAclubindia
