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Registration in case of exporters

Blog Post created by www.withdia.com Your Intelligent Assistant on Jun 26, 2017

In this blog, we look at a query on whether registration is mandatory for a person whose entire turnover purely comprises export of services.

 

Query:

We are fully export unit providing IT services to US clients. I understand that what we export does not comes under GST. But do we have to register under GST? Is it compulsory for us?

 

Response:

Yes you would need to obtain a registration.

 

Registration is mandatory if the value of taxable supplies effected exceeds Rs. 20 lacs. It is important to note that exports are zero-rated supplies and not non-taxable supplies. Hence, it is important that registration be obtained and other compliance procedures duly observed.

 

Legally, it is important to note that a transaction would qualify as exports, only if the prescribed conditions are fulfilled. Thus, procedure-wise, ‘export’ is a claim that would be made by the supplier and it should go through a test by the tax office – to ensure that the conditions are fulfilled. Thus, it is imperative that an exporter should be registered. Further, an exporter is eligible to claim a refund of input tax credits. This, once again, makes it mandatory that registration is obtained – only a registered person can make an application for refund

 

Legislative reference: Sections 2(6), 2(47), 22 of the CGST Act, 2017 read with Section 16 of the IGST Act, 2017

Authors: Meghana Belawadi and NR Badrinath

 

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