Export of Services under GST

Export of the services means any supply of the services which are given from India to outside India where the recipient is located. The transaction is treated as the export of the services if the place of supply of the services is outside India. If it is not outside India then it is not exported.

Export of the services is when any services are supplied as a place of supply of services outside India. Get help from Professional Utilities to solve any problem related to the GST.

Table Of Content

What is the export of services under GST?

A place for the supply of the services in export is - 

• The supplier of the service is in India.
• Recipients of the services are outside India.
• Place of supply of services in outside India
• Payment is received in Indian rupees or in convertible foreign exchange.

Documents required for the Export services GST

• Services agreement or purchase order - it is defined as official documents send to confirm the payment term, description of goods, delivery term, etc by the buyers to the exporter. 
• Import-export code (IEC) - IEC is issued by the DGFT for the export or import of goods and services. It digit identification code of 10 digits.
• Export Invoice - export invoice is issued by the exporter as a billing document that contains information just like GST Invoice with additional information.
• In the case of the export of goods shipping bill - A shipping bill is the document issued to the customer by the exporter which moves goods out of the country.

In case of the export without payment of IGST is a bond or LUT-  A letter of the undertaking filled to get the exemption from IGST payment on export by the exporter.

In the export of the services are Foreign inward remittance or Bank realization certificate(BRC) - This is the confirmation letter which confirms that exporter against export will receive payment this letter issued by the bank.

Procedure for export of services under GST

There are certain steps that need to be followed as mentioned below - 

• Obtain a valid GST registration - Valid GST Registration needs to be obtained by the exporter. Irrespective of the value of the goods and services registration is compulsory for the exporters. 
• File a shipping bill: The Shipping Bill needs to be filled to the customs authorities. This should be in compliance and accurately relevant to the regulation.
• In the GST returns exports should be declared - In GST Returns exporters should declare export such as the value of the goods or services exported, invoice number, and destination country. Information provided by the exporters is used for the refund.
• The claim of the refund and IGST is paid - The exporter should fill out the refund application and other relevant documents. Refund need filled in the RFD-01A form or GSTR-3B form. 
• E-way bill - To send goods on the consignment e-way bill is generated. The document contains detail about the quantity, value, and destination. The GST portal or a mobile app can both be used to generate the e-way bill.

Export of the services without payment of the taxes  -

Export of the services can be done without payment of taxes with the help of the  LUT( Letter of undertaking). This enables them to export without having to pay taxes or request refunds.

LUT - Letter of the undertaking is valid for one year, for exporter, this is more convenient than refunding of the taxes. As cash does not get blocked and difficulties of procedure are also lessened with the use of the LUT.

Conclusion 

Export of the services occurs when the place of supply of services lies outside India. Export of the services is exempted from the GST Regime. Export can either pay the tax and get the refund in the future or they can export the goods with the help of the LUT. Certain documents are required for the procedure of the exports. Export of the goods is beneficial for the country.

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What steps must be taken in order to export services under GST?

The exporter can choose to pay IGST on exports and then request a refund under the GST laws. The export dealers now have an easier way to submit a refund claim. There is no requirement to file a refund application (GST RFD-01) separately for the export of goods, services, or both.

What is the GST export limit for services?

Service export is considered an interstate supply, and Notification No. 10/2017 - Integrated Tax allows for registration exemption (despite Section 24(i)) only until one exceeds the predetermined thresholds of aggregate turnover of 20 Lac or 10 Lac, depending on the financial year, respectively.

Which registration is necessary for service export?

The export of services from India is governed by the IEC Code, a system of norms and regulations. You must submit an application to the customs agency in your home country in order to register under the IEC Code.

Is the HSN code required for service exports?

Yes, It is required for the export of service. Since HSN is well-liked over the world, export purposes make it more significant. As stated in the announcement, HSN operates on a turnover basis. It is required for all taxable goods, whether they are intended for domestic use or export.

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