IS GST registration mandatory if I am working as a remote software consultant
2 years ago
I will be working for a US based company as an independent contractor and they will be paying me in USD.
1. Do I need GST registration?
2. Do I need to file for a LUT certification?
3. How long does it typically take to secure both GST and LUT certification?
4. In case I need GST registration, which value do I need to select on the registration form for
a. Constitution of Business (Select Appropriate)
b. Are you applying for registration as a casual taxable person?
c. Option For Composition
d. Reason to obtain registration
e. Type of Registration
f. Proof of Constitution of Business (here which documents do I choose since I am not actually a registered business but an independent contractor)
5. In case I cannot secure LUT, is it true that I need to file multiple GST returns per year after getting paid every month?
Would be really grateful for some guidance here. Thank you very much!
Please consult Tax Consultant.
Since you are exporting an service, you are eligible to register under the GST. Whether it is mandatory or not would depend on the quantum of your transaction. LUT is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid. Filing LUT is convenient than refund mode as the exporters do not wish to indulge into hassles of refunds and block their funds. The eligibility criteria to apply for LUT is comparatively relaxed than to the erstwhile system. So, I would suggest that you should obtain a LUT registration as well. A mandatory GST registration certificate is required for registering for LUT.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
Yes, you are liable to register under GST. In return of income, you have to give details of your purchases and sales. Details of US company is not mandatory. The Letter of Undertaking is a document submitted by the exporter in order to export goods or services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax paid. LUT is only issued after GST registration. You are required to take registration and file 3 returns monthly and 1 return annually.
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