Is GST applicable on services received from foreign company?

As per the IGST law, import of services under GST applies when the trade occurs in inter-state. It also applies when the consumer receives the services from a person residing outside India.

Is GST applicable for foreign services?

It will be considered as a zero-rated supply i.e export of services. GST will not be levied on export of any kind of goods or services. … It will be classified as export of services provided the payment is received in foreign currency. If you’re registered under GST, apply for LUT and Export without payment of GST.

Is GST payable on 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 applicable on import of services?

As a basic principle, GST law says that all supplies of goods & services made as imports into India will be treated as an inter-state supply. All inter-state supplies attract IGST. … IGST on import of services will be covered under the IGST Act.

Do we charge GST for services to overseas customers?

Your services are considered international services, which are zero-rated (i.e. GST is charged at 0%), if they fall within the provisions under Section 21(3) of the GST Act.

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How is GST collected on overseas purchases?

Instead, GST will be collected through suppliers, electronic distribution platforms or goods forwarders under the existing registration system or a simplified system. The intent is that low value goods imported by consumers will face the same tax regime as goods that are sourced domestically.

Is GST charged on Labour?

GST and HST charges are made on both the labour and the cost of materials.