IT consultancy business need IGST?

As you clients are in abroad than definately they are not having GST hence they are treated as Unregistered person, there fore you are only liable to pay CGST & SGST as service is provided from your registered address itself only.

Hi

Are you registered under GST?

If your turnover is below 20 lacs, you don't require GST registration.

If registered under GST, apply for LuT and you can export services without charging and paying GST.

Hi,

If you are receiving your fees in foreign currency, then your services qualify for export of services.

Accordingly, your services are zero rated and you dont need to charge GST to your clients.

In case your annual turnover is more than 20 lacs, then you will have to take GST registration and apply for LUT. (Please note that you still dont need to charge GST).

Hi,

You need not pay GST provided you will have to take LUT( letter of undertaking from the department).

Thanks

Damini

Hello,

If the turnover of your business is above Rs.20 lakhs then you have to get registered under GST regime. From the description on the nature of business carried out by you, it is export of services on which IGST is applicable. But an option is available to export services without payment of IGST.

Hi,

Hope you are doing well !

FIRSTLY ,if your turnover is more than 20 lakh, then you need to register for GST.

Secondly, your services are covered under the definition of export of services. You don't need to pay any GST.

Just apply for Letter of Undertaking and export services without charging /paying GST.

Thanks & Regards,

Payal Chhajed

Hi,

You don't require GST registration if your turnover is less than 20 lakhs.

If you are regiatered under GST, you can apply for LUT and can export services without charging and paying GST.

Hope that clarifies.

Regards,

Nikhil.

If your clients are based abroad and you providing services of IT and consultancy, this should be covered under export of services and hence, no GST need to be collected. Please note export of services is tax free, provided place of supply of services is outside India.

Also, you need to file LOU (letter of undertaking) online on GST portal with other GST returns.

Hi

You just need to obtain GST Registrations but you are not required to collect GST.

you should not worry, Please obtain GSTIN and file your GST Returns without paying GST.

let me first clarify the matter

did you received payment in foreign currency ?

where do you perform your services ? in India or abroad ?

Export of service is exempted from GST

Dear Sir,

Your business category is export of Services. In case of export of service IGST is applicable.

In case you are not willing to pay GST, you can apply for a Bond/LUT. Once a Bond/LUT is applied IGST is not required to be paid on Exports and inputs if any can be claimed as refund.

Take GST registration when turnover exceeds 20 lacs. You are doing export of services ,Need to take GST only when you cross the threshold limit and and then apply for LUT.

Thanks for the feedback.

Yes, LuT will help.

If you have LuT, you need not pay or charge GST on exports if you are receiving money in foreign exchange.

However, if you have not applied for LuT, you need to pay IGST first and then you may claim its refund since export of services are classified as zero rated supplies.

Please feel free to call/revert in case you need more clarity.

Dear Sir,

If you are receiving money in foreign exchange and your turnover is more than 20 lakh then you will have to take the GST registration and apply for LUT and export services without GST.

Even if have are not applied for LUT, pay IGST and claim refund as export of services are classified under zero rate services.

Warm Regards,

Karishma Chhajer

Dear Sir,

You nature of business falls into export of services and in case of export of services GST registration is required after crossing the threshold of Rs. 20 lacs in respect to aggregate turnover. If your turnover had already exceeded 20 lacs then you need to obtain GST registration and LUT for export without payment of taxes.

Thanks

Dear Sir,

The supply of any service shall be treated as EXPORT OF SERVICE when,

1. The supplier of service is located in India,

2. The recipient of service is located outside India,

3. The place of supply of service is outside India,

4. The payment for such service has been received by the supplier of service in convertible foreign exchange, and

5. The supplier of service and recipient of service are not just establishments of a distinct person.

Export of services are treated as zero rated supplies. Hence you do not have to pay IGST.

Although you are not liable to pay GST but you are bound to file GST returns. You need to show the amount of supplies made as Zero rated supplies in your GST returns.

Hope your queries are resolved.