sunit tyagi (accounts manager) (33 Points)
25 July 2018one of my client (company ) is a Web developer & designer provide the services related to website development and mobile aplication in India and Outside and Its turnover below 20 lakhs p.a.and receives the foreign payment .It will require to take the Gst Registration compulsory .
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 25 July 2018
If it is the export of service then registration is compulsary as per section 24. Section 24 says registration is compulsary for inter-state supply and under GST regime export of service/goods is considered as inter-state supply.
sunit tyagi
(accounts manager)
(33 Points)
Replied 25 July 2018
Thanks CA Shivam Arora Sir
It means Limit of 2000000 Rs is only For Intera-State Supply
If Client Receive the Foreign Payment in April 2018 in their Bank account but he dont take the registration of Gst yet now . Is it default of Gst . If yes
What will be the penality of it ?
prasad Nilugal
(3914 Points)
Replied 25 July 2018
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 25 July 2018
1)Yes 20 lakhs limit is for intra-state supply only.
2)Yes he in default, he should have taken registration within 30 days of making the supply.
Thus he is liable to penalty under section 122(xi).He shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded, whichever is higher.
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 25 July 2018
Yes you are correct notification 10 is applicable here but in one of the FAQ answered by the Government and posted on twitter also vide dated 22nd December, 2017, they have clearly stated that export service is an inter-state taxable supply and liable for registration.
There are contradicting view, and thus I would suggest to take the registration and supply without payment of tax.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 25 July 2018
No , As per Notification 10 exempts to obtain Registration if your aggregate turnover do not exceed 20 lac , & export is counted as Interstate as IGST Tax is applicable so no need to take Registration if your turnover is below 20lac
Acts are not govern/run by FAQ
sunit tyagi
(accounts manager)
(33 Points)
Replied 26 July 2018
I agree with you but
Now question raised
Web development Service is under the E commerce Service
This is the following notification 10
New Delhi, the 13th October, 2017
G.S.R. …..(E).— In exercise of the powers conferred by section 20 of the Integrated Goods
and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act:
Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.
Sec23
(1) The following persons shall not be liable to registration, namely:–
(2) The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
and updated notification
Central Government vide Notification No. 65/2017-Central Tax, dt. 15-11-2017 w.e.f 15th November 2017 has amended section 23(2), of CGST Act, 2017. the Central Government, on the recommendations of the Council, hereby specifies the persons making supplies of services, other than supplies specified under subsection (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year, as the category of persons exempted from obtaining registration under the said Act, Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.
sunit tyagi
(accounts manager)
(33 Points)
Replied 26 July 2018
(5)
(5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:
Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 27 July 2018
sunit tyagi
(accounts manager)
(33 Points)
Replied 02 August 2018
Thanks Pankaj rawat ji
you are wright
there is no need of registration
CAclubindia
