Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Gst on freelancers

CA SANDIP HISARIYA (JOB) (32 Points)

27 July 2017

GST on Freelancers?

Service Provider in India

Service Receiver outside India

Payment received in Foreign Currency

Reply
Follow
Share

5 Replies

Ahmed Ali (388 Points)
Replied 27 July 2017

It will be considered as Export of Service. If your turnover is below Rs. 20 lakhs, then no need to get registered and no implication if GST.

But if your turnover exceeds Rs.20 lakhs, then there are two routes for you to Export:
a) Export by executing a Band/Letter of Undertaking(LUT) without paying IGST
b) Pay IGST while exporting, and claim refund subsequently.

Option (a) is beneficial as claiming refund is not an easy task and there is always risk in it.

Upgrade to CAclubindia Pro. Subscribe Now!

Ahmed Ali (388 Points)
Replied 27 July 2017

*Bond

CA SANDIP HISARIYA (JOB) (32 Points)
Replied 27 July 2017

But in case of Export of Service it treated as Zero Rated Supply, then not require to pay IGST?

It is mandatory to get Register under GST if Turnover (Only Export) exceed 20Lacs?

Ahmed Ali (388 Points)
Replied 27 July 2017

It is a Zero-rated supply but if you refer Sec 16(3) of IGST Act, it gives you those two options.

Ahmed Ali (388 Points)
Replied 27 July 2017

Yes, you have to get registered under GST if your turnover(only Export) exceeds 20 lacs. Because that threshold limit is for taxable supplies. Definition of taxable supplies includes Zero-rated supplies.