Gst for independent consultant
Querist :
Anonymous
(Querist) 25 October 2023
This query is : Resolved
Hello Experts, I started work for Kuwait based company from India. I will be providing software related services and receving payment in USD. I was advised for GST regirstaration etc. as this is export service no GST will be applicable but filing is requried. I want to know if I take money in bank account maintained out of India still I have to go for GST registration. Can I avoid GST registration if service is provided outside India and money collected out side India? I understand I will be paying Income tax as professional Income on earnings. Expert pls clarify.
kavksatyanarayana
(Expert) 25 October 2023
As obtained information, if you are exclusively involved in the export of services outside India, apparently registration under GST is not mandatory. However, if you want to claim a refund of Input Taxes paid on goods or services used in rendering such services outside India then you are supposed to be registered under GST and you are supposed to satisfy the conditions attached with export to claim a refund of Input Tax.
Querist :
Anonymous
(Querist) 25 October 2023
Thank you for respose! Can you refer under which rule, act of GST export of service outside India GST registration is not mandatory?
T. Kalaiselvan, Advocate
(Expert) 26 October 2023
If services are imported without consideration, whether or not in the course or furtherance of business, it shall not fall within the scope of the term “supply”. Hence, GST will not be applicable on such transactions.
GST treats exports of commodities or services as interstate supplies. Therefore, Section 24 of the CGST Act of 2017 mandates that all exporters of products register for GST.
Indian businesses who export goods and services are considered as a zero-rated supply under goods and services tax (GST) - no GST is levied on such supplies.
This implies that exporters aren’t required to pay GST on their exports, and they can claim a refund of the GST paid on inputs and input services used in the manufacture of export goods or in the provision of export services.
