GST registeration for zero rated

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GST registeration for zero rated 2017-06-24T13:01:10+00:00
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  • SoniaSonia
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    #2341 |

    Hello,

    I have a software products business and 90% of my clients are from out of India. Few of the Indian clients I have they also don’t pay me directly they pay my payment gateway which then pay me. My payment gateway acts as bridge between us and till now my gateway charge service tax etc.. Using their own service tax number. So, there is no direct payment to me from any Indian.

    Do I need GST registeration since software export is zero rated.

    Neeraj SuriNeeraj Suri
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    GST Registration, INCOME TAX Return, COMPANY Registration, RESTAUARANT / FOOD License, IMPORT-EXPORT License, ,TRADE MARK,COPY RIGHT, BUSINESS IMMIGRATION IN EUROPE AND UK,US, ALL TYPES OF VISA ASSISTANCE, PASSPORT RENEWAL,CORRECTION,TATKAL AND NORMAL ASSISTANCE, =NGO ,SOCIETY AND TRUST REGISTRATION, ALL LEGAL REGISTRATION==MOBILE NO=8588050152

    Ramasamy UlaganathanRamasamy Ulaganathan
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    Sonia,

    You may not require to take registration only if you provide exempted service / supply exempted goods.

    Zero rate transaction is different from exempted transaction. Export not comes under Exempt category. Hence, you will have to register under GST if your annual turnover exceeds 20 Lakhs.

    With respect to Claiming Zero rate benefit on your Export transactions :

    You have two options

    Option 1 : You will have to Pay IGST on your own on your export transaction value and apply for Refund with Govt Or

    Option 2 : You will have to provide Bond / Letter of Undertaking with Bank Guarantee to Juridicitional Commissioner / Assistant Commissioner and get it approved before export any tranasaction without Payment of IGST.

    Please let me know if you need any further clarification.

    VENKAT VENKATARAGHAVANVENKAT VENKATARAGHAVAN
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    Sonia,
    You may not require to take registration only if you provide exempted service / supply exempted goods.
    Zero rate transaction is different from exempted transaction. Export not comes under Exempt category. Hence, you will have to register under GST if your annual turnover exceeds 20 Lakhs.
    With respect to Claiming Zero rate benefit on your Export transactions :
    You have two options
    Option 1 : You will have to Pay IGST on your own on your export transaction value and apply for Refund with Govt Or
    Option 2 : You will have to provide Bond / Letter of Undertaking with Bank Guarantee to Juridicitional Commissioner / Assistant Commissioner and get it approved before export any tranasaction without Payment of IGST.
    Please let me know if you need any further clarification.

    Generally an acceptable advice. But the twist in this case is: Can it qualify as Export of Service? Will the condition for realisation of proceeds in convertible foreign exchange be satisfied when the realisation is through an India payment gateway. How will Sonia get a BRC to qualify it as exports?

    Ramasamy UlaganathanRamasamy Ulaganathan
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    I agree with your point Mr. Venkat. Realization in Foreign currency is one of the primary conditions to quality for export. If realization not happend in FC in the given case, it can;t be treated as export for GST purpose even if customer located outside India. Accordingly this transaction would not fall under Zero rated supply. it will fall under taxable supply.

    Prince KumarPrince Kumar
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    If we consider some export as zero-rated, how do we pay the advance tax? Do we need to put taxable amount in 18% (if 18% category for IGST) category in GSTR1? Or we just make the challan before supply and then file GSTR1 as zero-rated?

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