TaxTMI 
TaxTMI 
Zero rated exports(software services abroad) were done without GST registration of 55L INR, I do not wish to claim any input credits. My business is 100% zero rated export of software services abroad. Would I have to pay 10000 INR as penalty or also 18% GST with penalty on the 55L INR?
zero rated service exports without GST registration
17 Feb 2022 
6 Replies 
4584 Views Asked by
Zero-rated exports risk tax and penalty if GST registration or LUT conditions are not met despite export documentation.
Exported software services that are supported by SOFTEX declarations and proof of receipt in convertible foreign exchange remain zero-rated, but failure to obtain GST registration or to meet LUT conditions (timely foreign payment for services) exposes the supplier to assessment as an unregistered person and to statutory penalties and interest; the burden of proving bona fide exports rests with the supplier and administrative relief from penalties may be sought. (AI Summary)
Exported software services that are supported by SOFTEX declarations and proof of receipt in convertible foreign exchange remain zero-rated, but failure to obtain GST registration or to meet LUT conditions (timely foreign payment for services) exposes the supplier to assessment as an unregistered person and to statutory penalties and interest; the burden of proving bona fide exports rests with the supplier and administrative relief from penalties may be sought. (AI Summary)