I sell E-Books to only foreign customer

[Guest]

Hi

I sell E-Books to only foreign customer

No payment from india is accepted on my website so i was thinking i would be excluded or included in GST tax

do i need to pay tax on it ?

I only and only server for foreign customers no and never i accept any payment from India any user trying to buy would get a message that Indian customers can't pay...........

Thanks

[Vijay kumar]

As per Section 2(6) of IGST Act, 2017-

(6) “export of services” means the supply of any service when,––

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

If you satisfy the above criteria, it amounts to export of service and you need not pay any GST, since exports are zero rated as per Section 16 of IGST Act. However, as per Section 22/23 of CGST Act, 2017 you need to take GST Registration, in case you wish to claim any refund of ITC on input services procured by you in exporting your service. You will also have to execute a bond in this regard with your jurisdictional Dy/Asst. Commissioner.

AI Summary

Export of services: supplies meeting IGST criteria are zero-rated, but GST registration is required to claim input tax credits. Export of services exists when the supplier is in India, the recipient is outside India, the place of supply is outside India, payment is received in convertible foreign exchange, and the supplier and recipient are not merely establishments of a distinct person; such supplies are zero-rated and not subject to GST. Suppliers seeking refunds of input tax credits on inputs or input services used for exported services must obtain GST registration and execute the bond or security required by the jurisdictional tax officer as part of refund procedures.