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gst on 100% exports of services

11 June 2017

hi, we do service only to a company in USA. in this regard, shall we have to register under GST. If so, how can we bill that company since a foreign company does not come under GST purview. please answer my query.

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8 Replies

vijayakumar (assistant commissioner ) (19 Points)
Replied 11 June 2017

export of service is exempt no tax

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amit kumar surana (ASSISTANT MANAGER) (11 Points)
Replied 11 June 2017

export of goods and services are covered under zero rates supplies

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ramesh kuchibhatla (13 Points)
Replied 11 June 2017

if our service is a zero rate service, i have few queries. 1. shall we have to register under GST since our service providers like internet, house keeping services are asking for our GST number. 2. And though our services are zero rated, shall we have to file the returns

1 Like

Govind JK Kolappan (General Manager Finance) (64 Points)
Replied 11 June 2017

Export service is Zero rated , but you need to have registration to claim refund

on export you have option to pay out put IGST and take input credit of IGST only and then pay net

however for SG and CGST you need to go for refund application

Anyway registration under GST Must

Thanks

ramesh kuchibhatla (13 Points)
Replied 11 June 2017

thank u sir, thanks for the clarification. appreciate your efforts in replying my query. you mean to say that, though we don't bill our client in USA, we are liable to pay output tax, right ?

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Govind JK Kolappan (General Manager Finance) (64 Points)
Replied 11 June 2017

no no, on export you need to raise invoice with IGST or Without IGST

this option is there for you

but surely you need to raise invoice for value of service and also you need to have inward remittance in convertible forex.

if you raise or if you pay IGST on export you can take input credit and apply for refund in full of the IGST paid

This is what i meant as i understand

Thanks

Govind

ramesh kuchibhatla (13 Points)
Replied 11 June 2017

thank u very much sir. it cleared all my doubts.

Uma Maheswari (4 Points)
Replied 21 June 2017

We are manufacturers of poly bags ,supplying to sez, eou under letter of undertaking so excise & vat exempted so far. in GST regime, it continues as such or any changes. pls advice