Application of GST for consultancy services given to US company
Query (Issue) Started By: – Rajendra Talati Dated:- 22-8-2018 Last Reply Date:- 27-8-2018 Goods and Services Tax – GST
Got 11 Replies
GST
Sir:
\nWe 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 –
\n(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?
\nThanks – Rajendra
\nReply By ANITA BHADRA:
\nThe Reply:
\nYour contract is signed with US Company and you are providing services to US Company . This will <\/p>\n
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\nReply By KASTURI SETHI:
\nThe Reply:
\nNo benefit of threshold exemption limit on account of export turnover. Registration under GST is required irrespective of the quantum of turnover of export.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir\/Madam,
\nIn 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.
\nOur experts may correct me if mistaken,
\nThanks
\nReply By KASTURI SETHI:
\nThe Reply:
\nSh.Alkesh Jani Ji, Your views are innovative and can be termed as though provoking.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nWith due regards, I invite your special a<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nI request that counter view, if any, may please be with proper authority.
\nThanks
\nReply By ANITA BHADRA:
\nThe Reply:
\nDear Alkesh Sir
\nIn response to your point :-
\nIn 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”
\n * Inter-State supply covered under (7(5) IGST act) . Export is treated as Inter-state supply under GST and IGST is charge on export.
\n *
\nReply By Ramaswamy S:
\nThe Reply:
\nPlease refer to Section 7(5) of IGST Act according to which Export is to be considered as Inter State Supply.
\nIf 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.
\nRegistration under GST is mandatory for Inter state supplies.
\nNo GST is payable on export of services.
\nHowever, since the point of supply is in the taxable terri<\/p>\n
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