Question 16: If I supply a laptop bag along with the laptop to my customer, what would be the rate of tax leviable? Answer: If the laptop bag is supplied along with the laptop in the ordinary course of business, the principal supply is that of the laptop and the bag is an ancillary. Therefore,… Read More »
Question 14: I have more than one SEZ unit in different States; do I need to take separate registrations? Also, I have two SEZ units in one State. Can I take a single registration? Answer: (1) Yes. Under GST, every entity shall take GST registration in each State from which it makes taxable supplies. However,… Read More »
Question 13: I am an agent in India of a foreign IT/ITES provider (principal located outside India). For agency services, I bill the principal in convertible foreign exchange. Whether GST liability arises in this case? Answer: You are an intermediary and the place of supply of the service provided by you to the principal is… Read More »
Question 11: I am an Indian Company who makes software and sells it outside the country. I have hired a firm (not a related party) ‘C’ located abroad to facilitate the supply of software in Europe and the USA; would I be liable to pay GST on the payments that I make to this entity… Read More »
Question 10: Would I be liable to pay GST on reverse charge even if the foreign supplier of software from whom I buy for use in my firm registered under GST was to accept the payment in Indian Rupees? Answer: Yes, you would be liable to pay GST. A supply is treated as an… Read More »
Question 9: How to determine the location of the recipient under IGST ? Answer: Location of the recipient of service is defined in section 2(14) of the IGST Act. A recipient of services is treated as located outside India if his place of business where he receives services is outside India or, if he does… Read More »
Question 8: How do I determine the place of supply of IT/ITES services under GST ? Answer: Place of supply of IT/ITES services is the location of the recipient in terms of section 12 and Section 13 of the IGST Act, 2017. However, if the recipient is not registered and his address is not available… Read More »
Question 7: How do I determine whether IT services provided by me constitute export of service under GST ? Answer: The supply of any service is considered an export of service, where the following conditions are met: (1) the supplier of service is located in India; (2) the recipient of service is located outside India;… Read More »
Question 6: Whether exports of software services attract GST? Answer: Exports and supplies to SEZ units and SEZ developers are zero-rated in GST. Zero-rating effectively means that no tax is payable on exports but the exporter/supplier is entitled to the input tax credit on inputs/input services used in relation to exports. The exporters have two… Read More »
Question 5: What is the rate of tax (GST) on IT services? Answer: The rate of GST on IT services is 18%. Related GST FAQ GST FAQ on IT / ITES 150 GST FAQ’s Replied by Govt of India Tweet FAQs on GST Registration GST Tweet -100 FAQs replied by Govt ; Compilation GST Rates… Read More »