GST for Services

[suvetha purushothaman]

Hi,

I am providing Web Designing, Domain Registration and hosting services. I have purchased Google apps for a client in Dubai. Kindly, please let me know whether i have put GST for that client. Because I am paying GST for Google apps. Can anyone please guide me.
Thank You

[ANITA BHADRA]

Dear Sir

You need not to put GST for client in Dubai . You can claim refund of input Tax ( paid for Google Apps) .

You have two options - pay IGST at the time of export and claim refund . or export under LUT without paying IGST and claim for input Tax refund

, your services to Dubai client will be considered as export of service subject to following conditions :(Section 2 (6) of IGST Act, 2017)

1.the supplier of service is located in India;

2.the recipient of service is located outside India;

3.the place of supply of service is outside India;

4.the payment for such service has been received by the supplier of service in convertible foreign exchange; and

5.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;

Relevant provisions :- Export of information technology is an important source of foreign exchange, with India being the biggest exporter of IT services.

Exports are zero-rated and input taxes paid will be allowed as a refund.

The default rule for place of supply (export of service) is the location of the service recipient if the address of the recipient is available.

Regards

[KASTURI SETHI]

In my view also it is export of service.

AI Summary

Export of service: supplies to foreign clients are zero-rated under GST and permit input tax refund options. Supplies of web design and related services to a Dubai client qualify as an export of service-zero-rated with input tax refund-if 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 parties are not merely establishments of a distinct person. The supplier may either pay integrated GST and claim refund or export under a Letter of Undertaking without paying integrated GST and claim refund of input tax.