karankayastha
TF Premier
Do I need to get a GST number if I'm getting paid for freelance work from overseas, even if it's less than 20 lakhs? I only made 7 lakhs last financial year.
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GST for freelance foreign income
- Thread starter karankayastha
- Start date
karankayastha
TF Premier
Someone send me this GST Registration is *compulsory for foreign income* no limit of 20 lakh will be applicable as per *section 24 of CGST act So what could be the penaltyNo need if under 20L. Enjoy until you earn less
HumorSimpson
TF Prestige
It depends on nature of service and how you recieved the money
If you earn via service selling then you should fill ITR via CA
If you ship product then u need GST regardless u do 20 lakh or not because it should be formal business
Only thing international thing I had was a french girl LDR during covid
French girl in long distance relationship
_amit_
TF Premier
I am not giving a conclusive answer, but providing the explanation of where this confusion comes from in my opinion.
I think the confusion begins with as follow:
- Section 22 (persons liable for registration) mentions some aspects of this 10L/20L/40L scenarios.
- Section 24 (compulsory registation) can over-ride Section 22 mentions Inter-state is compulsory.
- So this means, regardless whether you are not liable for registration under Section 22, if its Inter-State, you are required to register regardless of amount.
- Now the confusion starts as Section 23 also overrides Section 24.
- Now there was a notification that says the same you mention that if its 20L/10L, regardless of it being inter-state, registration is not required.
Notification of exemption under Section 23
Notification:
Explanation:
GST not payable on inter-State supplies of taxable services by exempt persons
Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not ...
taxguru.in
So, section 24 says that inter-state is required to register for GST, but the section 23 that overrides has a notification that says that 20L/10L special cases exists.
Moreover, FAQ on cbic website contradicts this above notification by saying that if its inter-state, one has to do registration regardless.
And this is why GST registration should be done.
Additional details:
Moreover, the same FAQ mentions that if your work is NIL-rated, you are not liable for GST registration.
So if your work in-fact is NIL rated, you are not liable.
However, as you export service and the way I know it, export of some services can be made 0 by LUT, does not mean the service itself is NIL-rated so do confirm with your CA.
This is also there is no problem with GST registration as you pay no tax, though compliance/filing is additional.
NOTE: Not a CA. Please do consult a professional/CA.
Last edited:
karankayastha
TF Premier
Thank you for detailed informationI am not giving a conclusive answer, but providing the explanation of where this confusion comes from in my opinion.
I think the confusion begins with as follow:
Explore Acts here:
- Section 22 (persons liable for registration) mentions some aspects of this 10L/20L/40L scenarios.
- Section 24 (compulsory registation) can over-ride Section 22 mentions Inter-state is compulsory.
- So this means, regardless whether you are not liable for registration under Section 22, if its Inter-State, you are required to register regardless of amount.
- Now the confusion starts as Section 23 also overrides Section 24.
- Now there was a notification that says the same you mention that if its 20L/10L, regardless of it being inter-state, registration is not required.
Notification of exemption under Section 23
Notification:
Explanation:
GST not payable on inter-State supplies of taxable services by exempt persons
Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not ...
So, section 24 says that inter-state is required to register for GST, but the section 23 that overrides has a notification that says that 20L/10L special cases exists.
Moreover, FAQ on cbic website contradicts this above notification by saying that if its inter-state, one has to do registration regardless.
And this is why GST registration should be done.
View attachment 61743
Additional details:
Moreover, the same FAQ mentions that if your work is NIL-rated, you are not liable for GST registration.
So if your work in-fact is NIL rated, you are not liable.
However, as you export service and the way I know it, export of some services can be made 0 by LUT, does not mean the service itself is NIL-rated so do confirm with your CA.
This is also there is no problem with GST registration as you pay no tax, though compliance/filing is additional.
NOTE: Not a CA. Please do consult a professional/CA.
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