Whether NOTIFICATION NO.10/2017-INTEGRATED TAX, DATED 13-10-2017 APPLY to - EXPORT OF SERVICES

[Adarsh singh]

As per Notification No. 10/2017-Integrated Tax dated 13-10-2017, the Government has specified that persons making inter-State supplies of taxable services, having an aggregate turnover not exceeding Rs. 20 lakh in a financial year (computed on an all-India basis), are exempted from obtaining GST registration.

However, the notification states that the aggregate turnover shall be computed on an all-India basis. This raises an interpretational issue as to whether the exemption from mandatory registration applies to all inter-State supplies, or only to inter-State supplies made within India.

Question:

Whether the threshold limit of Rs. 20 lakh is applicable even in case of export of services, and accordingly, whether a person exclusively making export of services with aggregate turnover not exceeding Rs. 20 lakh is not required to obtain GST registration, in terms of Notification No. 10/2017- Integrated Tax dated 13-10-2017? 

Please guide.

[Raam Srinivasan Swaminathan Kalpathi]

Exports are inter-state supplies only.

[Adarsh singh]

That is understood.

My query is

Shall export of services , qualify for exemption provided under said notification? or it cover only those inter state supply which are  made within India.

[Raam Srinivasan Swaminathan Kalpathi]

Inter-state supply definition does not distinguish between made in india or outside india.  That was the gist of my argument.

[Adarsh singh]

Thank you for clarification. 

AI Summary

Export of services: whether Rs 20 lakh all-India turnover exemption for GST registration under Notification No.10/2017 applies Notification No.10/2017-Integrated Tax exempts persons making inter-State supplies of taxable services with aggregate turnover not exceeding Rs.20 lakh from mandatory GST registration, computed on an all-India basis. The central interpretive question is whether exports of services fall within 'inter-State supply' for this exemption. The discussion concludes that exports are treated as inter-State supplies and the statutory definition makes no geographical distinction; therefore persons exclusively exporting services whose all-India aggregate turnover does not exceed the threshold would qualify for the registration exemption under the notification.