Application of GST for consultancy services given to US company

[Asked by Guest]

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

Export of services: registration required as exports are inter state supplies; supply zero rated, use LUT or pay IGST and claim refund.
Export of consultancy services is treated as an export of services and as an inter state supply; such supplies are zero rated but fall within the IGST regime, requiring either a Letter of Undertaking for export without tax or payment of IGST with subsequent refund. Forum responses diverge on whether threshold exemption for registration applies, with an authoritative view urging GST registration because aggregate turnover for registration includes exports and inter state suppliers must register.