GST on Service provided to Foreign Company in India

[Rahul Gawande]

Hello,

I am IT Service provider. We provided service to a client of foreign company in India. We have to bill to foreign company who do not have any office in India. How do I bill them? Do I have to add GST, if so at what rate? They will be transferring payment in USD to our bank account. Do I have to pay any Currency Conversion charges to bank? If yes & what rate?

Please help.

[Rajagopalan Ranganathan]

Sir,

You are providing the service to the client of foreign company who is located in India. The service is provided within taxable territory (India). Therefore you have to pay gst. Since the client of the foreign company is located in India he can avail the ITC of gst paid by you. The question whether you can charge the foreign company the gst paid by you depends on the clauses of the con tract entered into between you and the foreign company.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Rajagopalan

[Kishan Barai]

According to my view and understanding of your questions, you are going to provide the bill to your foreign clients in USD, so no question arises of GST, as it would be termed as exports.

[Nash Industries I Pvt Ltd]

GST is payable as the provider of service and the recipient of service is in the taxable territory.

Regards

S.Ramaswamy

AI Summary

GST on services to an India based recipient is payable; recipient may claim input tax credit, contractual allocation governs recovery.
Where the immediate recipient or beneficiary of IT services is located in India, the supply is treated as made within India and GST is payable by the provider; the Indian recipient can generally claim input tax credit, while recovery of the tax from the foreign principal depends on the contract between the parties.