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Ship repair hydraulic machinery

Arun Kumar Tiwari (Business Partner) (33 Points)

20 March 2020

Hi, I am a hydraulic technician and sole properiter of my new repairing copany, i am working for foreign company work in india port but billing in USD so can i ask my client to GST if yes how much percent to charge.

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6 Replies

M Dinesh [Accountant] (Senior accountant ) (55 Points)
Replied 20 March 2020

Sir, Regarding to your question, you are doing export of service right.!

If yes means, during exporting of services there is no need to collect any GST tax from foreign countries, and you also not liable to pay GST in this regard if you are have LUT bond with you,

incase if you are not having LUT means you are liable to pay IGST and then you can get refund of IGST by applying in GST portal for it,

Let's see what other professional are telling in this regard.!

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Arun Kumar Tiwari (Business Partner) (33 Points)
Replied 20 March 2020

No sir i don't have LUT

M Dinesh [Accountant] (Senior accountant ) (55 Points)
Replied 20 March 2020

Sir you can apply for LUT in GST portal, its very easy process only, once u got LUT u can avoid GST during export.

Arun Kumar Tiwari (Business Partner) (33 Points)
Replied 20 March 2020

Thanks for the reply

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 20 March 2020

No it's not Export Services .
As per Definition of Export Services U/s 2(6) of IGST , The place of supply of Services must be outside India & in your case the supply of services is in India.
But As per Amendment Act 31, 2018 , 2n Provisio of Section 13(3)(a) being Amended , as in case of goods Temporarily imported into India for repair without being put to any use in India other than that which is required for such repairs , then it's export Services.

So now if the ship you are repairing must be imported for repair purpose from outside India , then only such repairs will be treated as export Services.

Yes if you have Not filed the LUT you are liable Charge IGST on Bill .so whether Recepeint is paying you GST or not But you are liable charge IGST & Deposit the same.

So it's better to File LuT online on portal