Is GST Registration required for freelance software professionals having 100% sales overseas?

I’m a freelance software professional with an annual turnover of more than 20 Lakhs. I file ITR-3 under Section 44ADA (Presumptive Tax Scheme for Professionals).

I came to know about the GST registration requirement if the annual turnover is above 20 Lakhs. However, I’m getting mixed answers about the same when it’s export of services and is 100% overseas foreign currency invoices, and thus confused.

My sales are 100% services (export of services, SAC: 998313, 998314), and I receive my payments in USD. I have FIRC from my bank.

An article by TaxAdda says,

All services are provided outside India (Export of Services) – In such a case, registration is not required regardless of the value of services provided.

Reference: GST on Freelancers - Everything you need to Know - TaxAdda (2a)

Another article by TaxGuru says,

100% Export Service Provider Need to Get GST Registered

Reference: 100% Export Service Provider Need to Get “GST Registered”

Thanks!

Hey @AkashJhaveri , @Divya_Singhvi , @Kaushal_Soni , @Laxmi_Navlani can you?

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I think if we file LUT, we don’t need to pay gst but I’m also willing to know about this case

@Latesh_Bayad yeah, that’s correct. In either case, it’s not taxable as it’s zero rated. My question is, do I really need GST registration.

@Maharshi_Shah Can I expect an update soon? :slight_smile:

Hi @robincsamuel

Yes, GST registration is mandatory and even GST return have to filed in case your total receipts exceeds 20 lakhs. In case you are involved only in export and applied for LUT then you can just create invoice without GST and file returns.

Hope this helps!

Thanks, @AkashJhaveri!

Just to confirm, the below point by TaxAdda is therefore invalid, right?

Reference: GST on Freelancers - Everything you need to Know - TaxAdda (2a)

Update: I got a response from TaxAdda and they have confirmed it’s mandatory to register. They’ve removed the misleading point and updated the article as follows.

2. When you are providing services of more than Rs. 20 lakhs/10 lakhs in a financial year – In such a case, registration is mandatory. Even if you are providing all of your services outside India (100% Export of services) still registration is mandatory for you.

Thanks, everyone! I hope this thread will help someone in the future :slight_smile:

Hi @robincsamuel

I hope we helped you in answering the query.

You can reach out to us here on https://quicko.com/contact-us for your GST registration and Return filing requirements.

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