Have you heard about GST in India???

Guys,

what actions do you guys are planning for GST in India, freelancers like me do we need to register GST? if not what will happen.

As we mostly doing transactions through PayPal and if PayPal or India regulation Bank ie RBI will get us a problem for not registration the GST????

 

If you operating as an individual then there is no requirement of registering for GST. However if you are a sole proprietor or have a registered company then you have to apply for a GST number in order to doing business.

 

here is good information about GST

https://cleartax.in/s/gst-law-goods-and-services-tax

 

Simple and straight forward rule to remember is that if you are under 20 lacs turn over then you don't need GST number.

But as soon as you hit the 20 lacs mark in a financial year. (1st April to 31st March) then you have 30 days to get a GST number.

Source: My CA and Newspaper
Confirmation Source: https://cleartax.in/s/gst-registration/

[Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as applicable will be required to register as a normal taxable person. This process is of registration is referred as GST registration.

GST will apply when turnover of the business exceeds Rs 20 lakhs and Limit is Rs 10 lakhs for the North Eastern States.]

 

But the rule says that if you are giving services outside India (ie .. to Foreign clients) the threshold limit (Rs.20 Lakhs / or 10 Lakhs) doesn't come in to effect . The CST registration is mandatory in that case . So i think it means every freelancers (who is providing service to clients outside India) needs to register under GST . Freelancers and small software service providers from India : - Kindly share your expert view and put more light on it ...

 

Don't know but I have heard that export of services was exempted.

Source : http://blogs.tallysolutions.com/gst-imports-and-exports/

Exports
Under GST, exports will be zero rated, similar to the current regime. An exporter can also claim refund of the tax paid on inputs used to manufacture/purchase/provide the exported goods or services.

Export of services
Specific conditions have been laid down for a supply to be considered an export of service under GST. These are:

1. The supplier of the service is located in India.
2. The recipient of the service is located outside India.
3. The place of supply of the service is outside India
4. The payment for the service has been received by the supplier in convertible foreign exchange and
5. The supplier and recipient are not establishments of the same person.

For example: Rohan Consultants in Mumbai, Maharashtra, provides business consultancy services to Abey’s Engineering in Singapore. The payment for the service has been received in Singapore Dollars.

Here,

Location of supplier: Mumbai, Maharashtra

Location of recipient: Singapore

Place of supply: Place of supply will be the location of the recipient, i.e. Singapore.

Payment for the service: Payment for the service has been received in convertible foreign exchange, i.e. Singapore Dollars.

Relationship between the supplier and recipient: The supplier and recipient are distinct persons.

Hence, this supply qualifies as an export of service. Rate of tax on the supply will be 0%.

 

Thanks for giving more detailed info , I think GST registration is mandatory in this case as the service giving to foreign clients (services caters outside the country) falls in to export of services . Kindly share your thoughts

 

@Nick_Mayhem thanks for these info. What about if we receive payment through paypal? Paypal send money in INR to our bank acount

 

GST is considered as an indirect tax for the whole nation that would make India one unified common market. It is a tax which is imposed on the sale, manufacturing and the usage of the goods and services. It is a single tax that is imposed on the supply of the goods and services, right from the manufacturer to the customer. The credits of all the input taxes which are paid at each and every stage would be allowed in the subsequent stages of value addition that makes GST basically a tax on value addition only at every stage. The final consumers will bear only the tax charged by the last dealer in the supply chain with the set of benefits that are at all the previous stages.

It is charged at the national and state level at similar rates for the same products and it also replaces almost all the current indirect taxes that are imposed separately by the Centre and the States. Goods & Services Tax is a destination based tax which means that the tax is paid at the place of supply.

You may find more details at following link...https://gst.caknowledge.in/gst-overview/

Goods:

Means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Service:

Means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

 

It is not mandatory. If you are exporting you can always opt for Letter of Undertaking Bond it could be one timer or running bond based on other angles associated with your business.

If GST was mandatory on Paypal I guess Paypal would have asked for your GST number by now as they asked for a PAN card some years ago.

I don't know about paypal but I am sure that something will come up on that side too.

 

gst not applicable for individuals.

 

Oh yeah? Have you heard about proprietorship? which are considered as Individuals?
Stop smoking or injecting whatever you are smoking or injecting right now.

Please save some money.

 

thanks for the views

 

Yes, I would like to share good information on it, check this GST Registration Online in India

 

@Nick_Mayhem
That 20 lakh rule is not for service providers I think.
Service providers have to register anyways and pay their 18% GST on each sale of service, right from start.

 

https://www.kanakkupillai.com/online-gst-registration

 

Kanakkupillai
Thanks for that link. You are a CA?