Our firm might get bulk content writing projects from a foreign client - work involves researching and writing content and delivering articles in .txt format to the client. Will be paid in foreign currency (Euros). Can we claim export exemption (zero rated)? I read that the general rule is that 'place of supply' is 'location of recipient' and so most services could qualify for export. But is there any exception for content writing services?
Hi
Your understanding is correct. If the remittance is recieved in foreign currency, you can declare such services as zero rated supplies.
You will need a GST registration once your turnover exceeds 20 lacs.
Apply for a letter of undertaking post registration and then you can export such services without payment of GST.
The content writing services you are contemplating would be eligible for export of services. Place of supply in your case would be location of receipient. Further, you need to ensure the following:
1. that privity of contract is between your organisation and foreign client and
2. the funds are received in convertible foreign exchange and FIRCs are maintained for it.
You may also look for export benefits, if any.
Regards
Lakshay
Hi
Yes this will consider as export of service. That means you can claim as a zero rated.
Hello,
Yes, considering you are receiving convertible foreign currency against your services, it would be classified as Export of Services.
GST Registration would be required once the gross receipts cross the threshold of Rs. 20 Lakhs. After registration, services can be supplied without payment of GST under LUT.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
Yes, your understanding is correct. it is export of services ,it will not be chargeable to GST.
However, once your turnover exceeds 20 lacs, you will be liable to GST registration. Once registration is done, you can apply for LUT and export services without payment of taxes.
We may assist you with the entire process and compliances
Yes you surely can.
No exception
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
- Yes it can be treated as export of services. GST registration is required once you cross the limit of turnover beyond Rs. 20 lacs. You can export without payment of taxes after applying LUT.
