LUT and Export of Services in GST

[@CAGunjanHirani]

taxguru.in/goods-and-service-tax/100-export-service-provider-gst-registered.html Please refer to this article and refer to a FAQ by Government dated 22.12.2017, wherein it is clearly mentioned that in case of export threshold of 20 lacs is not to be provided

[@devesh9070]

Very informative video mam 👍

[@CAGunjanHirani]

Thanks a lot

[@naveenpandey4941]

Ji mam ekdum clear huwa

[@CAGunjanHirani]

😊😊

[@vinodsharma6170]

In my opinion GST registration is not required even in case of export of services upto 20 lakhs as per section 24 of CGST act 2017 read with section 7(5) of IGST act 2017 read with notification no.10/2017-I.T,dated 13-10-2017.

[@CAGunjanHirani]

taxguru.in/goods-and-service-tax/100-export-service-provider-gst-registered.html Please refer to this article and refer to a FAQ by Government dated 22.12.2017, wherein it is clearly mentioned that in case of export threshold of 20 lacs is not to be provided

[@hadipatel5344]

@@CAGunjanHirani Hello, I totally agree with your point mam. But as per my opinion notification has higher value than FAQs. Isn’t it? Because in law also mentioned that GST is applicable but after that authority issued notification that registration is not required. After this notification “not requires to register” any notification issue for “registration required”? Except FAQs. In the FAQs it may be possible only describing raw law language. Please guide on this. Thanks in advance

[@devgoyal7100]

Notification No. 10/2017 dated 13/10/2017 states that threshold limit of 20 lakhs is available for supplier of service making inter state supply of 'Taxable Services'. Taxable supply and Zero rated supply (Exports) are different under GST. The said notification is only for Taxable supply of service and not for Zero rated supply of service. @vinodsharma6170 ​@hadipatel5344

[@AmritPalkaur-i7p]

Thanks @gunjan I had this query , you answered so clearly

[@harshjain4483]

Excellent Video!!

[@RishiKapadia-It]

Thank you for sharing this information here!

[@vaishnavi9319]

Thank you so Much, you are lovely, keep making videos!

[@cachandnihirpara7864]

As per Section 22 Every supplier shall be liable to be registered under this Act in the State or Union territory, other than Special category States, from where he makes a Taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees. Export of services is treated as Inter-state supply. Under section 24(i) persons making any Inter-state taxable supply are required to take compulsory registration. However, under section 23(2) of the CGST Act, 2017 the Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act. Under section 23(2) the government by notification. No.10/2017-IT dated 13.10.2017 notified that persons making Inter-state supplies of taxable services shall be exempted from registration u/s 23(2) where turnover is not exceeding Rs.20 Lacs. Therefore, if turnover is LESS THAN than Rs. 20 lakhs, registration is NOT required.And if amount of aggregate turnover is MORE THAN Rs.20 lakhs, registration IS REQUIRED.

[@CAGunjanHirani]

taxguru.in/goods-and-service-tax/100-export-service-provider-gst-registered.html Please refer to this article and refer to a FAQ by Government dated 22.12.2017, wherein it is clearly mentioned that in case of export threshold of 20 lacs is not to be provided.

[@AdarshGautam-y9q]

Hello Ma'am ! This is an excellent video. I have recently a sole proprietorship firm for selling digital products to US customers. This video has cleared all my doubts about LUT except one. If you can show few invoice examples, it would immensely help me and everybody else. Thank you

[@dharmkritbhagat5238]

So In this case Do I need to file ZERO GST or show invoice amount on GST with exemption

[@pcjalaludheen4617]

Thank you

[@devendradevidasani7598]

WHETHER LUT WAS OBTAINED AND MENTIONED ON THE EXPORT INVOICES BY INFOSYS INDIA.

[@praveens2905]

Firc govt ne 2016 me band kar di he e firc chalu kar de he jo ki paypal aur strip jese co mail ke dwara hamko bhejti he jisko fira ya remetance advice kahte he kya eski base par refund clame kiya ja sakta he

[@CAGunjanHirani]

Yes definitely if you get e-firc that is more than sufficient for refund

[@praveens2905]

But mem uske upar sirf remintance advice hi likha rahta he kya kare

[@praveens2905]

Aur 16 digit refrance no likha rahta he

[@CAGunjanHirani]

@praveens2905 do you know FIRC full form? It is foreign inward remittance certificate.. just make sure your remitter name, foreign currency is mentioned on the certificate

[@CAGunjanHirani]

@praveens2905 send sample certificate to [e-mail] for me to check

[@mdss7647]

Mam aak video jarur banye ki export service ka lut number lene ka baad jo payment aaya h wo kaise gstr 1 ma file karke dikhaye

[@vivu003]

Mam personal saving account pe freelancing ke USA client se fund aata hai more than 6 lac and GST nahi liya hai or Indian income bhi hai trading ki to in that case kya kare ....koi income tax lagega kya ...and GST also didn't took LUT & GST so software services export pe kya income tax lagega ya lagega hi nahj

[@CAGunjanHirani]

Please send your queries to [e-mail] Lots of compliances required in your case. Non compliance will lead to penalties, taxes and interest levies

[@sharanxxxx]

In today's era, it is impossible to get GST number at home address. Isn't it mam? As i am trying to apply gstn at my home address and the tax officer is rejecting it Although i have all the proper documents.

[@CAGunjanHirani]

Mail me the details. We will try to get it resolved. It's not that impossible and it is very very important to go for it in case you are involved in export of services. ;) [e-mail]

[@GajananPatil-u7e]

Hello Madam What about, input tax credits ITC in case of Export of services. Facebook and Google automatically charges us 18% GST for Advertisement

[@CAGunjanHirani]

You can claim refund of the same from gst department

[@manjunathpattar8885]

Dear Madam, we are into fabric exports as well as we are providing services to overseal client in respect of handling issues of the client buyers in india as well as outside india, we are raising qtrly fixed amount of service invoice to overseas client & they are making the payment, pls advice applicability of GST in this situation.

[@sbiacc8555]

Maam, ek question hai ki? Agr me vpn lgake tiktok se earn karra hu or paypal ke thru earning manga rha hu to kiya mujhe dikkat aa sakti hai kia koi????? Please answer zarur de🙏🏻🙏🏻🙏🏻

[@CAGunjanHirani]

Agar apke bank account mein foreign currency transaction visible h and amount is huge then

[@sbiacc8555]

@CAGunjanHirani mujhe koi dikkat na aae to mujhe iske liye koi tips dede please please🙏🙏

[@planbb9533]

Export of service is included in Interstate supplies. As per law, Interstate taxable supplies upto 20 lac is exempt from taking GST registration. So, export of service will get benefit of 20 lac or not?

[@CAGunjanHirani]

taxguru.in/goods-and-service-tax/100-export-service-provider-gst-registered.html Please refer to this article and refer to a FAQ by Government dated 22.12.2017, wherein it is clearly mentioned that in case of export threshold of 20 lacs is not to be provided

[@ajaychavan2]

Mam, mene KZbin se 30 lakh earning karli hai. Aur pura amount mere account me aachuka hai. Mam abb muze agge kay karna chahiye, plz guide me mam 😢

[@CAGunjanHirani]

Go for GST registration and subsequently LUT immediately

[@Twitter_Timeless]

Another great video. My query is that earnings from foreign countries remain uncertain. But, once GST registration is taken then its return filings and related headaches become certain! In case this earning stops then is it easy to get rid of GST and surrender registration?

[@CAGunjanHirani]

I would not say that it is easy but it is definitely not difficult if you are doing all your compliance on time and correct. It is easier to surrender as compared to the after effects of not taking and complying with GST registration on time.

[@Twitter_Timeless]

@@CAGunjanHirani Thanks for such a quick response. Have a nice day.

[@CAGunjanHirani]

@Timeless5000 same to you!

[@JyotiMishra-tg2qd]

In case of income received from KZbin, what do you suggest, is it taxable or not, or it is exempted under export of services

[@CAGunjanHirani]

@JyotiMishra-tg2qd it depends on lot many things. Are you receiving funds in foreign currency Are you getting FIRC from the bank Are you getting money from an Indian registered entity or foreign company

[@gursewakksingh5158]

Mam can u make a complete series about export complaince

[@CAGunjanHirani]

Will make soon. Thanks

[@sandeep8kumar752]

SUPER

[@thescenicscenes]

Maam you got one sub😊

[@mahendrarao6287]

Thanks mam

[@ManishKumar-cz6wu]

Can we take input tax credit on the Office supplies required to render the services?

[@CAGunjanHirani]

Yes definitely

[@sandeshbodake4681]

Mam mai fruit ki service kar raha hu to gst hai ya nahi exempt hai

[@CAGunjanHirani]

Aap fruits India k bahar export karte hain? If yes then it is exempt from GST. No need to do GST Compliance

[@bankniftylearning4245]

Hello Mam. Please help me out to understand the tax filling better in bellow situation and please help me out regarding how i can avoid or save gst tax I am a software engineer and working for one canada based company from last 3 year. for first two year i recieved salary less than 20 lakhs (around 12-16 lakhs) but financial year (2023-2024) i recieved 21 lakhs I dont have any GST Number and LUT and all. My company sending salary in dollars to paypal and paypal or any other third party services sending me into RS. In the end i am getting in rupees only without any PF , TDS etc Just because it crossed 1 lakh extra i dont wanted to pay 18% GST for whole year. From current year i can manage to get less than 20 lakhs. I am just worried that if i not file any GST then it should not create any problem in future . How i can save or how i can file the tax. ALso when we can apply for LUT ? This option is not visible in gst portal. Some of users saying LUT forms only be submitted from janunuary to March end. Please help me out

[@CAGunjanHirani]

Hello Sir, You can reach out to us at [e-mail] Need to enquire about 2-3 more things before giving you proper guidance in your case

[@OnyxFX9]

i am forex prop firm trader and i am going to take funded accounts on my company name. can i do that? and is there any legal issues in providing trading services to the forex prop firm as i a onluy getting the profit split as a commission of trading their account.

[@CAGunjanHirani]

Yes, you can take the funded accounts on the name of the company. However there are some legal issues when traders do not comply with the rules and regulations of Forex trading firm as their money on the stake. Forex trading is not illegal, but SEBI and RBI highly regulate it. You can only trade in four currency pairs with the INR as the base or the quote currency. You also need to use a SEBI-registered broker or an authorised dealer to trade legally in forex in India. Major Legal Issues will arise only if proper disclosure and mandatory compliances as per statutory authorities are not followed. However legal issues may differ as per the circumstances Also you need to careful while taking the funded accounts from third party as the contract and T&C can be case sensitive. Hope this helps.

[@OnyxFX9]

Thank u ma'am.. if I have a pvt ltd company for export of consultancy services .. do I need to disclose/ prove what services I am providing to the tax authorities?? Or ever in any circumstances do I need to provide the proof of what service I have provided???

[@KaushalGrover]

instead of the usd hitting my bank... and my bank converting it to INR... what if my company uses an indian bank to pay into my bank directly in INR. would this change anything? I think I would still need GST. But for the invoice is just my bank statement enough?

[@gunjangupta3051]

I am a freelancer who does export of software consultancy services. Based on my understanding if you are getting payed by the client in INR its not export of service. Its same as providing service to an Indian client and you have to pay GST as applicable. For something to be considered as export, the payment must be made in foreign currency by the client. Also to prove that we got money from export as claimed, we need to submit FIRC (foreign inward remitance certificate) when filing GST returns.

[@CAGunjanHirani]

@gunjangupta3051 firc is not required to be submitted while filing gst returns. Yes but it is needed to prove that you did export of services during any assessment by gst officers.

[@OnyxFX9]

​@@CAGunjanHirani How to prove if we have just provided the telephonic consultation or whatsapp consultation... How to prove that??

[@rajansharma28]

Hello Gunjan Mam, thanks for the informative video. I have a query, if I have a consultancy agreement with a foreign company (outside India) and I am providing services to them for gathering market info, identifying potential Indian clients and helping the foreign company in deal closures. Moreover, I am raising monthly consultancy Fee invoice to the foreign company and I am getting remittance in USD. Will it be considered under “Export of Services” ?

[@mohitsang4195]

Hi mam. I am a freelancer graphic designer and my clients pay me thru Deel, the amount hits my bank account in INR and they aren't providing FIRC as they say amount is coming in INR to them and no forex is involved. I have GST/LUT and invoices/ agreement etc, but what to do about FIRC, do I have to pay GST from my own pocket now ? 😢 Please help 🙏🏻

[@CAGunjanHirani]

Can you please mail your queries to [e-mail]?

[@mohitsang4195]

@@CAGunjanHirani Email sent.

[@binusukumaran1373]

Madam Good presentation. Let's me LUT number. I Generate LUT number from Gst portal. I got application reference number (ARN) no other number is found. Is this is LUT Number. Please advise

[@CAGunjanHirani]

Yes that arn is LUT NUMBER

[@binusukumaran1373]

@@CAGunjanHirani Thanks for your valuable information

[@Trivedi27]

What about Rs. 20 Lacks limit in case of Export of Service under Section 24

[@CAGunjanHirani]

Limit of 20 lacs does not apply to export of supply.

[@cachandnihirpara7864]

As per Section 22 Every supplier shall be liable to be registered under this Act in the State or Union territory, other than Special category States, from where he makes a Taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees. "Aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on Reverse charge basis), exempt supplies, exports of goods or services or both and Inter-state supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess. Export of services is treated as Inter-state supply. Under section 24(i) persons making any Inter-state taxable supply are required to take compulsory registration. However, under section 23(2) of the CGST Act, 2017 the Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act. Under section 23(2) the government by notified that persons making Inter-state supplies of taxable services shall be Therefore, iif turnover is And if amount of aggregate turnover is

[@cachandnihirpara7864]

@@CAGunjanHirani As per Section 22 Every supplier shall be liable to be registered under this Act in the State or Union territory, other than Special category States, from where he makes a Taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees. Export of services is treated as Inter-state supply. Under section 24(i) persons making any Inter-state taxable supply are required to take compulsory registration. However, under section 23(2) of the CGST Act, 2017 the Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act. Under section 23(2) the government by notification. No.10/2017-IT dated 13.10.2017 notified that persons making Inter-state supplies of taxable services shall be exempted from registration u/s 23(2) where turnover is not exceeding Rs.20 Lacs. Therefore, if turnover is LESS THAN than Rs. 20 lakhs, registration is NOT required.And if amount of aggregate turnover is MORE THAN Rs.20 lakhs, registration IS REQUIRED.

[@mehulchauhan007]

Hi CA Gunjan mam, I run a proprietorship in IT consultancy and have both my GST and LUT numbers. I received a payment through Wise, but I'm encountering an issue: I’m paying another company for services rendered to my client, and they are charging me GST. To claim this GST, I need a Bank Realization Certificate (BRC), but my bank says they don't issue BRCs for service transactions. What should I do in this situation? Any guidance would be greatly appreciated. Thank you in advance!

[@DigitalMe-l5g]

Haha, no CA is helping with this question. They only understand that it should come in foreign currency. They don't understand D2C business situation & payment collection. One such case was logged in Hyderabad court where the business owner was being paid through PayPal and ultimately getting in INR in account for which bank was not providing any frc. The court accepted it to be foreign income and the result was in favor of the business owner. But I m not sure whether the court accepted only PayPal or other similar fintech as well.

[@CAGunjanHirani]

@DigitalMe-l5g the ideal situation is to have FIRC. Otherwise it is debatable and assessment can happen. As per GST LAW, FIRC is a must. CAs are not so much positive about it because officers are not very positive about such cases.

[@9029lak]

So mam iska itr 44ad m hota h?

[@CAGunjanHirani]

That depends on your nature of services if non professional then 44ad if professional then 44ada

[@Abhinavjoshi25]

Hey, is obtaining firc necessary after applying for lut because i receive my payments in inr via paypal as they have their partner bank which credits my account in inr so to proove that it is an export of service can department demand firc from me?

[@CAGunjanHirani]

Yes they might ask especially if you apply for gst refunds of input tax credits

[@Abhinavjoshi25]

But is it written under gst act that even after obtaining an lut i should get an firc? cause the problem is that bank straight away decline from providing the firc as the money is credited in inr and PayPal's partner bank is not liable for providing the firc as fedai circular states that in any case firc should be provided by the beneficiaries bank account even if amount is received in inr. I am so confused by all this.

[@CAGunjanHirani]

@@Abhinavjoshi25 Getting FIRC is very important only for refund cases. If you dont intend to get GST refunds, then you just need to have a proof that services are providied for customers outside India and they are also being utilised outside India to claim it as export of services along with the profof the origination of payment is happening from outside India

[@kabirsingh3959]

bro PaYPal provides it already. Bank do not. ​@@Abhinavjoshi25

[@AartiIyer-u1h]

Nice video. Can you please make a video on claiming refund of GST on export of services with payment of tax. What are ITCs that are not allowed for refund.

[@CAGunjanHirani]

Will make it soon. Thanks.

[@KalyanBhattacharjya-r4s]

Hi Gunjan. I have a good ITC positive balance in my account and have LUT for the current FY. Can I still issue export invoices with IGST collected which can be paid from my ledger balance and later claim auto refund of that IGST in monthly filing? This would reduce my positive ITC balance and it would get credited to my bank account within 60 days. But I have LUT for this current FY.

[@CAGunjanHirani]

Please send your query to [e-mail] You need not put igst on your invoices to claim refund. You can simply claim refund of your itc ledger balance and use lut for your invoices

[@KalyanBhattacharjya-r4s]

@@CAGunjanHirani Hi Gunjan. I understood about the accumulated ITC refund under LUT, the only problem under LUT is there is a physical visit to the department with all document. Don't want to go thru that. My question is "Can I export some shipments under LUT as well as some shipments on payment of IGST in a same tax period (FY 2024-2025), and claim refund claims of ITC as well as IGST respectively of export shipments"

[@vaishnavi9319]

Ma’am, one doubt, if I’m giving consultancy services to company outside India but salary I’ll receiving in INR through one of the intermediaries, do I need to get registered myself and apply for LUT

[@CAGunjanHirani]

It is a very case specific query needs proper analysis. Would suggest to drop in at [e-mail]

[@baluragula822]

You need LUT, ask if bank give FIRC then you are blessed with this export benefits🎉

[@ravikantparab8946]

Madam good morning, We are msme manufacturer and exporter of the plastic products.we have LUT bond We received purchase order from foreign buyers for the moulding tool @2 lac and article @1000 nos The article will be shipped as per tax invoice under LUT bond But how to make the invoice of the mouldind Tool which was lying at our factory physically movement not to be done The mould property ownership with our foreign buyer Please advise..

[@CAGunjanHirani]

Please send your queries to [e-mail]

[@ravikantparab8946]

Ok

[@madhavkarnani7131]

Greetings! I wish to ask the case when I do not realise export proceeds for export of service under LUT within the time frame of 1 year from invoice (Rule 96A(2)). I have already claimed refund of unutilised ITC under Rule 89(4), and I subsequently pay IGST with interest. Q1. Will the refund under Rule 89(4) be recovered from me?; Q2. Which all amounts can I claim back once I realise the proceeds later, since I paid the entire IGST and Interest in cash?

[@vipulkalra8588]

Hello Mam. Great video. A lot of doubts got cleared. I am a freelancer financial/trade analyst and I provide me analysis/signal/trading services to foreign prop firms and receive my fees/commission. Is there a way I can have a personal consultation session with you as I also need to discuss about Income tax management ( Section 44ADA etc ) and a few more things to help me manage my money 🙏🏻 So I may need consultation in future, any way we can to that with you ? ( Ofcourse ready to pay any fees about it )

[@CAGunjanHirani]

Hello Vipul, Thank you for your kind words. Yes we can connect at [e-mail] to discuss your queries in detail.