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GST for Overseas clients or providing IT services from India to Outside India

Active Member
Amandeep S Member Since: Aug 15, 2018
1 of 6

Hi, I am from India .I have started Occasional Freelance Service (IT /Web Development) to Outside of INDIA only. I have completed my first Freelance work which I got from personal connections(offline) and NOT from UPWORK . I haven't registered my business and also not registered for GST. Now my client from CANADA willing to pay CAD $3000 via Foreign Currency Cheque.

Now MY Only Motive is to get paid from foreign client in legal way( He wants to pay using cheque only) My bank SBI want invoice copy to clear foreign currency cheque for same......
my questions are...

1) Do I need to register my business first???
2) Do I need to register for GST, whether or not I register my business???
3) How can I invoice my client if I don't register my business and Don't register for GST??
4) Is it possible to make legal invoice without gst on above case.
5) Any other legal way to get paid for my work without GST Registeration???

Community Guru
Petra R Member Since: Aug 3, 2011
2 of 6

@Amandeep S wrote:

Hi, I am from India .I have started Occasional Freelance Service (IT /Web Development) to Outside of INDIA only. I have completed my first Freelance work which I got from personal connections(offline) and NOT from UPWORK .


 This has what, exactly, to do with Upwork?

 

Active Member
Amandeep S Member Since: Aug 15, 2018
3 of 6

The relevant solution will be applicable to all new freelancer whether someone use UPWORK or not... I do bid in UPWORK too , looking for my first project here ... But for now I am looking for Invoice and GST related help from experinced Freelancers... As its a community of Freelancers I expect relevant answer even if the question is related to UPWORK or NOT.

Community Guru
Prashant P Member Since: Sep 29, 2015
4 of 6

Do a search on the forum.  It is also my re-collection that IT services are GST exempt up to some level.  Consult a (good CPA) not not a friend of your borther-in-laws's friend' friend or responses on an internet forum/

Active Member
Jayendra G Member Since: Sep 4, 2019
5 of 6

Here is my opinion:

1) Do I need to register my business first??? - Not compulsory if income is less then 20 lakhs
2) Do I need to register for GST, whether or not I register my business??? - Not compulsory
3) How can I invoice my client if I don't register my business and Don't register for GST?? - you can create simple "Invoice"
4) Is it possible to make legal invoice without gst on above case. - Yes you can make simple invoice and shuould not charge GST on invoice.
5) Any other legal way to get paid for my work without GST Registeration??? - GST registration is is required if you cross above turnover limit from all your business income.

 

Related article:

 

Every person must take GST Registration as soon as he crosses below the turnover limit. Thus, it becomes mandatory to get register under GST and pay the normal taxes as soon the person meets the below turnover requirements. Therefore, If the person does not cross the below the threshold limit, then he is said to be exempted from the GST Registration. Please see below the different turnover limits set for the supplier of goods and services.

Supplier of Services

The threshold Turnover limit for GST Registration is Rs. 20 lakh for a supplier of services. However, this limit is Rs. 10 lakh for the states of Manipur, Mizoram, Nagaland, and Tripura. Thus, as soon the supplier of services crosses this limit he needs to take GST registration and pay the tax. Also, he needs to file all GST returns as per the existing law.

Further, E-commerce operators need to take mandatory GST Registration who collects tax at source. On the other hand, they are exempted from taking GST registration, if they are supplying services through e-commerce platforms, for turnover of up to Rs. 20 lakh.

JAYENDRA GAONKAR
Ace Contributor
Shubham K Member Since: Aug 18, 2017
6 of 6

Hello Amandeep,

 

Though it's an old thread, I would still like to put some points, so that if someone have similar queries they can get better understanding of the situation.

 

1) Do I need to register my business first???

 

--> There is no separate business registration. You need to register for GST if your turnover is exceeding INR 20 lacs, however certain international payment gateways are asking for GSTIN irrespective of your business turnover. If you wish to collect payment from these payment gateways, you shall be required to register for GST and furnish the same.


2) Do I need to register for GST, whether or not I register my business???

 

--> There is no separate business registration for a sole proprietorship business. So if you have an Indian PAN card, you can start any business. However if you have applied for a GST certificate and provided a trade name in it, you can use this certificate as your official business registration certificate too.


3) How can I invoice my client if I don't register my business and Don't register for GST??

 

--> You will still be able to invoice your customer, however it will not bear any GSTIN, most of these invoices gets generated via upwork only so you don't have to take stress to generate it separately.


4) Is it possible to make legal invoice without gst on above case.

-- > Yes, it is possible, it will just like any other invoice without a GST number.


5) Any other legal way to get paid for my work without GST Registeration???

--> I would recommend you to take a GST registration, apply for LUT and collect FIRCs from your bank. This way you will not have to pay any GST to the government if all your clients are outside India.

 

I have written a detailed post for Indian Freelancers to understand the applicability of GST compliance, you can read it here

 

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