Export of Service

[NISHANT SIPANI]

Dear Sir / Madam,

Case :The Client runs a Blogging website in India.The website accepts paid articles published on the website. The payer is paying in USD via PayPal converting INR into the Current account of the client.

1. Is GST leviable on that USD pay or
2. It should be treated as an export of service and file LUT?

Thanks and Regards
Nishant

[Spudarjunan S]

Nishant,

It requires more facts and reference of the contract/terms entered into with the parties involved therein to answer your queries precisely, like - Location of the supplier of Services, Who are the recipients, location of such recipients whether within India/Outside India.

However, based on certain assumptions and factors following guidance is being provided:

Q 1. Is GST leviable on consideration received -

Yes, if the Website running in India exceeds the turnover threshold limit. In case the owner of the website is from outside India and such website is accessed by unregistered persons in India then yes it would get covered under compulsory registration u/s 24 irrespective of your turnover and thereby GST has to be paid on such supplies.

Q2. To decide whether it is an export of service or not.

Refer to the conditions specified in Section 2(6) of IGST Act 2017 - i.e., Location of Service Provider to be in India, Location of Service Recipient to be outside India, Place of supply to be outside India (For OIDAR - refer provisions of s.13(12) of IGST Act). The other two conditions are seems to be satisfied in your given facts.

[KASTURI SETHI]

Reply by Sh. Spudarjunan S is full of substance and crystal clear.

AI Summary

Is GST Applicable on USD Payments for Indian Blog? Check Export Conditions Under Section 2(6) IGST Act 2017. A client operating a blogging website in India receives payments in USD via PayPal for publishing paid articles. The query concerns whether GST is applicable on these payments or if they should be treated as an export of service, requiring a Letter of Undertaking (LUT). One response suggests GST is applicable if the website exceeds the turnover threshold or if accessed by unregistered persons in India, necessitating compulsory registration. To qualify as an export of service, the conditions under Section 2(6) of the IGST Act 2017 must be met, including the location of the service provider and recipient.