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Gst for software freelancer (export)

Rajesh (Software Consultant) (17 Points)

09 April 2018

I'm freelancer software consultant working from india. I have only one client located in Saudi Arabia, and my montly payment is done in US Dollar. My total income from freelancer is from out of india and less 20 lacs.

Question?

1) Do I need to still register for GST. (If so, Please provide me reference of GST consultant from Mumbai, I will pay for this charges)

2) Since export of services is Zero rated. What would GST I need to pay for invoice of 1lakh for software service export out of india. (If so, Please provide me reference of GST consultant help me file GST return)

Thanks!

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15 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 09 April 2018

1)In GST export is treated as inter-sate supply and as per the section 24 of the CGST act 2017 ,persons making any inter-sate supply shall be requried to be registered under GST irrespective of the turnover .

2) Export is zero reated supply in GST ,so you can either pay IGST and take refund or you can submit LUT /BOND for export of your service .

LUT- you have to submit Lette of undertaking on GSTN portal online . you can also call to GSTN hep disk .

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 09 April 2018

No , u don't need take registration if ur turnover is below 20 lac

As Per
Notification 65/2017 CT dated 15.11.2017 exempt suppliers of services through an e-commerce platform from obtaining compulsory registration. As a result, all service providers, whether supplying intra-State, inter-State or through ecommerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover is below the twenty lacs. Earlier there was compulsory registration under such persons.

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Rajesh (Software Consultant) (17 Points)
Replied 10 April 2018

Thank you for providing your views. I appreciate both the replies and help.

But thats confusion we all small software professional have, one is saying to register and pay GST and other says Not required. How come reputed CA's have different view on same GST law :)

Still confused :) In new ITR - 4 they have asking GST number for filing professional or business returns.

Can someone provide more help on this topic.

Thank you guys, sorry I not meant to be rude Only some confusion.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 10 April 2018

After the notification refer above no need to register if your turnover is below 20 lacs , u can provide services (not goods) INTERSTATE (export)

Rajesh (Software Consultant) (17 Points)
Replied 10 April 2018

Thank you, I saw Notification and it clearly mention there. Following details for community member.

https://howtoexportimport.com/GST-tariff/Central-Tax-Notification-No-65-of-2017-dt-15th-Nov-7968.aspx

Thank you for all help!!

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Geetu Gupta (Freelance Software Engineer) (22 Points)
Replied 13 July 2018

I am a software freelancer and receive payment in USD . my trunover is below 20Lakhs and I do not intend to take any Input tax credit.

Can you please help me understand if I need to take a GST registration or not.

Thanks in Advance

Rajesh (Software Consultant) (17 Points)
Replied 13 July 2018

Geetu, As stated from CA professional, its not required.

vijay (Engineer) (17 Points)
Replied 21 September 2018

I too am in the same boat, A New Small S/W export business with revenue expected to be below 20L this year.
I will be spending a few lakhs for setting up my office and buying office equpiments.

My CA is telling me

GST is required irrespective of the size of the business for export business.
I will get a refund on the GST paid on the investment on office equipment if I register for GST even if I have zero income from India(My understanding is I can only offset the input GST against any GST due on sales).
I need to register for both GST and IEC code(My understanding is if GST Registration is done IEC registration is not required)

Can someone please clarify on the above 3 points.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 21 September 2018

1. FOR GST REGISTRATION I HAVE REPLIED AS ABOVE

2. YES YOU CAN HAVE ITC ON OFFICE EQUIPMENT (NOT IN CONSTRUCTION OF OFFICE)

3. NO IEC CODE REGISTRATION IS COMPULSORY IN CASE OF EXPORT OF GOODS, EVEN THOUGHT YOU HAVE REGISTERED IN GST

NOTE : IF YOU ARE EXPORTING GOODS THEN GST REGISTRATION MANDATORY IRRESPECT OF TURNOVER

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 21 September 2018

AS PER NOTIFICATION 10/2017 IT , DT. 13/10/2017 ,...IF YOU ARE PROVIDING EXPORT SERVICE THEN NO NEED TO TAKE REGISTRATION IF YOUR AGGREGATE TURNOVER IS BELOW 20LAC

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Rajesh (Software Consultant) (17 Points)
Replied 21 September 2018

https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.cbic.gov.in/htdocs-cbec/gst/notfctn-10-igst-english.pdf&ved=2ahUKEwjAsrbz_8vdAhUDTI8KHRivCYcQFjACegQICBAB&usg=AOvVaw3Gv3kpp-UVubYGytdmKM8e

ADITYA MEHROTRA (CA CS DipIFR (ACCA-UK)) (62 Points)
Replied 24 May 2019

Hi Pankaj Rawat.. I saw you have given correct interpretation to notification no 10/2017 dated 13/10/2017, Now my question is since the threshold limit is increased to 40 Lacs so will 20 lacs limited of notification no 10/2017 dated 13/10/2017 will be substituted with Rs 40 Lacs.

Thanks in Advance !