GST for Service Tax Customer

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GST for Service Tax Customer 2017-09-27T02:30:25+00:00

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  • Kavitha ReddyKavitha Reddy
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    #2563 |

    Hi

    I am a freelance software service provider. I provide software services to US client.I used to submit Service tax returns with Zero tax as the amount is received in dollars and exempted.

    Noe with GST in action, What are the returns I should file? Now How I can claim the exemption for convertible currency received, in which form I can receive exemption.

    Thanks in advance.
    Kavitha

    Ramasamy UlaganathanRamasamy Ulaganathan
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    Outright exemption on Export of Service not available in GST Law. Export of Services has two options now.

    Option 1 : Pay applicable IGST mostly 18% on all export of Service invoice from your pocket and apply for Refund with Tax department.

    Option 2 : Provide letter of undertaking along with Form RF 11 to your jurisdictional Central Tax officer and raise export service invoice without any tax like Pre-GST scaneria. LOU submitted by you will be valid for one financial year. You need to make sure all the export service invoice realized in foreign currency within one year from the date of invoice. ( Latest notification of CBEC dated 4th October 2017 also considered here )

    Considering the working capital blockage, option 2 would be the best for small time service provider.

    With regards to return reporting requirement. You will have to file 3 returns every month – GSTR 1 ( Sales return ) GSTR 2 ( Purchase return ) and GSTR 3 final return. In addition to above three return there is another return also required to be filed called GSTR 3B for the month July to December. In simple for the period July to December, you will have to file 4 monthly return and from January 2018 onwards, you will have to file 3 monthly return.

    Apart from monthly returns, there will be annual return requirement also needs to be filed.

    All the return required to be file even if there is no transaction for particular month or particular period.

    Export revenue needs to be reported as Zero rated transaction in GSTR 3B and GSTR 1.

    Please let me know if you need any further clarification on this.

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    Kavitha ReddyKavitha Reddy
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    Hi Ramasamy,

    Thanks for the info. But with the new changes in gst on 6/7 that Oct. … No need to register for 20lakhs for all interstate and foreign export??

    Thx

    Ramasamy UlaganathanRamasamy Ulaganathan
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    Yes, Kavitha. Your understanding on the recent changes made on 6th October is correct.

    Export of services fall under the inter state supply of Service. Accordingly, if your turnover not exceeds 20 Lakh p.a, you may not require to get registered under GST.

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