Foreign income GST

Income Tax Income from Business or Profession
1

Hello team,

I have a question regarding Goods and Services taxes. Do I need to register for GST if I work with a foreign client and my income is below 15 lakhs after conversion to INR?

Thank you

2

Hi @Sy31

If you’re in the export of goods or services and turnover does not exceed the threshold limit of ₹20,00,000, even then you are required to register for GST.
Compulsory registration is required for exports under GST, even if the turnover is less than 20 lakhs.

3

@Shrutika_Shah
I think you if you are exporting service then GST registration is not required under 20lakhs turnover.
Pls confirm?

4

Hi @love4u_now

Since exports are zero-rated, one must register for GST to claim refunds.

5

Hi Shrutika, I have some queries here:

  • If the cross receipts are exceeding 20lakhs in Nov 2023, then when one have to apply for GST.
  • Also as export of services is 0 rated, then can’t we just skip applying for GST, what are the consequences of not applying for GST?
  • I guess one need to get the LUT for the above use case, if there any other way of getting the LUT and skip the GST registration because it would be an added responsibility to file the nil returns everytime. Are there any ways of skipping this and get LUT by some other ways?
6

Hey @Yash_123,

  1. If the cross receipts exceed ₹20 Lakhs in Nov 2023, then you’ll have to apply for GST Registration by Dec 2023 as one has to apply for GST within 30 days of being liable.
  2. The penalty in such case will be 100% of the tax due or Rs. 10,000 – whichever is higher.
  3. No, there’s no alternative and one needs to get GST registered to get LUT.
7

Thanks Surbhi for the answers