GST registration mandatory for export of services in India.
Finance & Investment,Law
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For a long time, India has been a significant exporter to the global market. The Indian GDP and economy are growing at an increased rate due to recent laws that have been passed in India which encourage exports. Additionally, if you are looking to begin an exporting business in India it is possible to avail many advantages from the government, after getting the necessary licenses and registrations. Even if you’re selling services, you’ll require GST Registration since the government has declared GST registration compulsory for services that are exported to India.
What exactly is GST as well as GST Registration? GST is a term used to describe tax on goods and services. This is an indirect tax process in India. Businesses that are eligible to be registered as a participant under GST and collect tax from their customers. They then provide the tax for tax collection to government.
This is why GST registration is the method by which you are able to register your business for GST. After obtaining GST Registration, you’ll be issued an unique GSTIN as well as other information that you must utilize to file your GST Return filing.
Taxpayers whose total turnover exceeds the exempt amount in the amount of Rs.20 Lakhs (Rs.10 Lakhs in certain circumstances) are required to register for GST Registration.
Yet, GST Registration is also required for the exporting services to India no matter the volume.
Learn about the Export of Services under GST GST Regime defines the Export of Services as follows:
The Supplier has its headquarters within India and the recipient is outside of India
Location of Supply of Service is outside of India
Supplier of Service receives the payment in a convertible foreign currency, or Indian Currency
As per Section 1 of Section 8 both the provider and service user are only the property of a single person.
Does GST registration required for export of Services in India? GST Registration is required for exports of services to India. According to a Government FAQ posted on Twitter on December 22nd in 2017 export services are taxes that are taxable in the US and therefore require GST registration.
Classification of Exports of Service in the GST Regime Export of products or services is classified as the definition of a “zero-rated supply” under Section 16 of the IGST Act. This means that it’s not an exempted category. Zero-Rated Supply can also be applied for export service to Special Economic Zones.
Documents Required for Exporters to be able to claim a refund Invoice Copy
Copy of the Document of the Duty Payment
CA Certificate that tax liability has not overruled
Other Documents as per the government requirements
Additionally, taxpayers need to provide a an undertaking letter to export services , without being required to pay Integrated Goods and Service Tax (IGST).