Goods and Services Tax – Started By: – Rajendra Talati – Dated:- 22-8-2018 Last Replied Date:- 27-8-2018 – 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 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 considered as Export of services . You need to take GST Number for this In one of the FAQ answered by the Gov
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turnover. Registration under GST is required irrespective 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 not 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 – 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-comm
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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 IGST 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. Registration 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
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