Is GST registration compulsory for export of services?

My all outward supplies are export services. In this case is it compulsory to register under GST? Yes. Since, exports are zero rated, one needs to register for GST to claim refunds.

Is GST applicable for export of services?

Export of goods or services are treated as Inter-state supply under GST and accordingly, IGST is charged on export. # ‘Zero rated supply’ and covered under Section 16(1) of IGST i.e. the exported goods or services shall be relieved on GST and levied upon either at the input stage or maybe at the final product stage.

Is GST required for services?

Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too.

Is LUT required for export of services?

It is not necessary for the client to file for LUT if they are exporting goods or services. If the client goes for LUT, Then person may supply goods or services under bond or LUT without payment of integrated tax and can claim refund of unutilized input tax credit.

Can we export without Lut?

Any registered taxpayer exporting goods or services can make use of LUTs. However, any person who has been prosecuted for tax evasion for an amount of Rs. 2.5 Crores or above under the act is not eligible to furnish LUTs. The validity of such LUT’s is for a period of one year (till the end of financial year).

Is GST registration mandatory for online services?

Yes, registration under GST is mandatory for all e-commerce operators irrespective of the sales turnover. Hence, prior to commencing business as an ecommerce operator or within 30 days of commencing business, all ecommerce operators are required to be registered under GST.

What services are GST exempt?

GST/HST Zero-Rated and Exempt Supplies

• Prescription drugs;
• Medical devices such as wheelchairs, eye glasses, canes, hospital beds, and artificial limbs;
• Basic groceries;
• Most agricultural and fishing products;
• Goods and services exported from Canada, and;
• Foreign travel and transportation services.

What happens if export without Lut?

An exporter furnishing LUT’s is required to furnish fresh LUT for each financial year. If the conditions mentioned in LUT are not satisfied within the time-limit, the privileges are revoked and the exporter will have to furnish bonds.