Export Of Services

[Guest]

We are having RPO (Recruitment Services Outsourcing). We get paid in USD. Per month we get 5k-8K USD from client.

Do we have to pay GST in India.? We have Private limited company. Experts ::Please reply asap as we to file the return and do we have to mention any thing on audit report.

[Nitika Aggarwal]

Dear Sir,

Can you please elaborate the kind of services being provided by you. Further, are these services consumed outside India ?

Regards

Nitika Aggarwal

9999804960

[Yash Jain]

Dear Sir/Madam,

You have both the options to Pay the GST and Not to pay GST but it depends entirely on how you want to claim the “Accumulated Refund of Input Tax Credit”. If you have accumulated Input then we pay GST by reversing the Input

Case 1.: You have Accumulated ITC: Do not pay GST and file refund application by following formula as under (Export Services) / (Total Services) X Accumulated ITC.

In this case File GSTR 1 by selecting option as Without payment of Tax

Case 2 : You have Accumulated ITC : Do Pay GST : Pay GST @ Say 18% (Put rate as applicable for your export Service) and reverse the Input. Then submit FIRC Copy / BRC Copy to officer and you will get refund withing 7- 15 days

Now the above entirely depends upon the ITC Which you have. In case you have major export credit in particular period, then go for option 1, as you will get more refund as compared to “Option 2”. Now in case you have equal Export sales and Domestic sales then go for Option 2, it will give more refund as compared to option 1.

Hence It entirely depend upon your matrix.

Note : Apply for LUT In case you do not have input but want to export “Zero rated”.

Comments from other members highly solicited.

[DR.MARIAPPAN GOVINDARAJAN]

Please answer the queries of Nitika.

AI Summary

Export of services: choose zero-rated refund or pay-and-refund route based on available input tax credit and sales mix. Two operative options for GST on exported recruitment services are described: (1) where the supplier has accumulated Input Tax Credit, treat exports as zero-rated without payment of tax and claim refund of accumulated credit by applying a proportionate allocation formula and filing GSTR 1 as without payment; (2) pay tax on export invoices, reverse attributable input credit, and claim refund on submission of remittance documentation such as FIRC/BRC. A Letter of Undertaking is advised if there is no input credit but exports are to be zero-rated.