Hi, I am a sole proprietor of business in WB. I am Australian citizen with OCI, living in India as a tax resident (more than 180 days per year). I earn all my income in foreign currency (AUD) which is paid into Australian bank account. I then transfer my earning into a business account in WB and it is converted to INR. I have one contractor in WB who invoices me here once per month for data entry in INR. I pay them from my Indian Business bank account. My annual turnover is less than 20 Lakhs. Do I need to register for GST? and if so do I need to pay GST on foreign income, my understanding is that I do not. Thanks
In my opinion, from a GST perspective, you are doing exports of goods or services from India as you are an Indian resident for taxes.
GST registration will be mandatory irrespective of the turnover limit if you export goods.
However, if you are involved in the export of services, GST registration is not mandatory if your aggregate annual turnover does not exceed Rs. 20 Lakhs in a financial year.
No need to register under GST till income exceeds Rs. 20 Lacs.
Once income exceeds Rs. 20 Lacs you need to register take LUT and no need to pay any tax file NIL Return
Dear Sir,
Hope you are doing well !!
You would be required to get GST registration only if your turnover crosses the limit of RS 20 lakh.
Also, after getting GST registration, You won't be required to pay any GST provided you would be having LUT for export of services.
It is advisable to take a phone consultation for detailed discussion.
We may assist you in entire procedure.
Dear Sir,
In reference to your query, your understanding is correct that you do not need to pay GST on foreign income. However this is subject to the condition that in order to earn such income, no supply of service is being provided from India. If this be the case, then the transaction would qualify as export of service and you would be required to take GST registration and comply with the provisions and procedures.
However, further to the above in case of provision of services, if your aggregate annual turnover does not exceed Rs. 20 Lakhs in a financial year, GST registration is optional.
In case GST registration is mandatory / taken, in that case the option of LUT can also be explored wherein the requirement of payment of GST would be obviated.
Please advise in case of any further clarification.
Thanks & Regards,
CA Aditya Dhanuka.
Hi,
Since your turnover is less than 20 Lakhs you don't need GST registration even when you are exporting services.
And in the situation where your turnover exceeds 20 lakhs you will need registration and if you apply for LUT (recommended) you wont have to pay GST on your services.
Hope this is helpful
Regards
- Are you into the business of supplying goods or services?
- Assuming you are supplying services then threshold limit for GST registration is Rs.20 lacs.
- If turnover exceeds Rs. 20 lacs then GST is mandatory. The consideration should get credited directly into your Indian account and FIRC should bear the name of the remitter to whom the invoice is raised.
For detailed discussion, you may opt for phone consultation.
No you need not register under GST considering that your income from business is below Rs. 20 lakh a year.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
GST registration is not required if your turnover is less than Rs. 20 Lakhs.
Regards
