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

Export of service criteria determine whether blogging receipts in foreign currency are taxable or treated as export. Whether foreign currency receipts for paid articles on an India based blogging site attract GST depends on turnover and registration: GST is leviable if turnover exceeds the registration threshold, and a non resident owner whose site is accessed by unregistered Indian users may face compulsory registration under section 24. Treatment as an export of service requires satisfaction of Section 2(6) IGST Act conditions (provider in India, recipient outside India, place of supply outside India), with OIDAR supplies governed by s.13(12).