Application of GST for consultancy services given to US company

[Rajendra Talati]

Sir:

We registered our LLP firm in Mumbai last year Sep 17, and as we do not expect our turnover crossing 20L we do not have GST number and not applied for it. We got a contract for consulting a US company for setting up their operations in Ahmedabad. (Their Ahmedabad entity is existing but for different business). The contract size is less than 20L. Our contract is signed with US company in USD and invoices will be raised in USD. My questions are -

(1) Will GST applicable for invoices under this contract? (2) Do I need to take GST number? (3) Or should we raise invoice to their Indian establishment in INR and get paid?

Thanks - Rajendra

AI Summary

Consultancy Firm Debates GST Registration for Export Services to US Despite Turnover Below 20 Lakhs, Section 22 Implications A consultancy firm in Mumbai sought advice on whether GST applies to their contract with a US company, given their turnover is below 20 lakhs and they lack a GST number. The consensus among forum participants is that the consultancy services to the US company are considered an export of services, requiring GST registration despite the low turnover. Some argue that exports are treated as inter-state supplies under GST, necessitating registration, while others suggest that GST registration is not required if the turnover is below the threshold. The discussion highlights differing interpretations of GST regulations regarding export services.