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TMI BlogApplication of GST for consultancy services given to US companyX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir: We registered our LLP firm in Mumbai last year Sep 17, and as we do not expect our turnover crossing 20L we do not have GST number and not applied for it. We got a contract for consulting a US company for setting up their operations in Ahmedabad. (Their Ahmedabad entity is existing but for different business). The contract size is less than 20L. Our contract is signed with US company in USD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and invoices will be raised in USD. My questions are - (1) Will GST applicable for invoices under this contract? (2) Do I need to take GST number? (3) Or should we raise invoice to their Indian establishment in INR and get paid? Thanks - Rajendra - Reply By ANITA BHADRA - The Reply = Your contract is signed with US Company and you are providing services to US Company . This will be consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered as Export of services . You need to take GST Number for this In one of the FAQ answered by the Government and posted on twitter also vide dated 22nd December, 2017, they have clearly stated that export service is an inter-state taxable supply and liable for registration. You can either export services under LUT or Pay IGST and claim Refund . In my view , raising invoice to Indian Esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blishment is neither advisable nor it will be beneficial to you . Experts in this forum are requested to share their views - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = In my view GST is not applicable since the turnover is less than 20 lakhs. - Reply By ANITA BHADRA - The Reply = There is contradiction between Notification No 10/ 2017 dt 13.10.2017 ( exemption of registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a person making INTER STATE SUPPLIES and Govt FAQ dt 22 DEC 2017 mentioned in my response . - Reply By Rajendra Talati - The Reply = Thanks Ms. Bhadra and Mr. Govindrajan for your valuable inputs. Great help. Thanks - Rajendra - Reply By KASTURI SETHI - The Reply = No benefit of threshold exemption limit on account of export turnover. Registration under GST is required irres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective of the quantum of turnover of export. - Reply By Alkesh Jani - The Reply = Sir/Madam, In this regards, my view is that, import of goods or services shall be treated as Inter-State but nowhere, it is stated that export is to be treated as inter-state . Moreover, as per the Trade Notice No.9 of DGFT, the person can export the goods based on PAN Number. This implies that GSTIN is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t necessary unless specified under Section 24 of CGST ACT,2017 . Therefore, GSTIN is not required for export of goods or services, if the turnover, is less than as prescribed under the law. Our experts may correct me if mistaken, Thanks - Reply By KASTURI SETHI - The Reply = Sh.Alkesh Jani Ji, Your views are innovative and can be termed as though provoking. - Reply By Alkesh Jani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Sir, With due regards, I invite your special attention to Para 3 of Trade Notice No.09 dated 12.06.2017 , issued by DGFT, New Delhi. I request you to please re-comment based on above. Thanks - Reply By Alkesh Jani - The Reply = Sir/Madam, Further, the aggregate turnover, is defined at Section 2 (6) of CGST Act,2017 and is as follows:- (6) aggregate turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegrated tax and cess; From above, it is crystal clear that GST registration is required if aggregate turnover is above 20 lakhs, which includes exports of goods and/or services. In the instant case, the querist has clearly stated that his aggregate turnover is below 20 lakhs, therefore, registration is not required. I request that counter view, if any, may please be with proper authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Thanks - Reply By ANITA BHADRA - The Reply = Dear Alkesh Sir In response to your point :- In this regards, my view is that, import of goods or services shall be treated as Inter-State but nowhere, it is stated that export is to be treated as inter-state Inter-State supply covered under ( 7(5) IGST act ) . Export is treated as Inter-state supply under GST and IG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST is charge on export. - Reply By Ramaswamy S - The Reply = Please refer to Section 7(5) of IGST Act according to which Export is to be considered as Inter State Supply. If it is a supply it can be either Inter state of Intra state. Export is not an Intra State Supply. Consequently it falls under the Inter State Supply and that is the reason for Section 7(5) of IGST . Regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration under GST is mandatory for Inter state supplies. No GST is payable on export of services. However, since the point of supply is in the taxable territory, IGST is payable as the location of supply of service is Gujarat and the location of the supplier of services in Maharastra. Regards, S.Ramaswamy - Application of GST for consultancy services given to US company - Query Star ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted By: - Rajendra Talati Dated:- 22-8-2018 Goods and Services Tax - GST - Got 11 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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