GST registration for zero rated?

Question

Hello,

I have a software products business and 90% of my clients are from out of India. Few of the Indian clients I have they also don’t pay me directly they pay my payment gateway which then pay me. My payment gateway acts as bridge between us and till now my gateway charge service tax etc.. Using their own service tax number. So, there is no direct payment to me from any Indian.

Do I need GST registeration since software export is zero rated

Answer 1

You may not require to take registration only if you provide exempted service / supply exempted goods.

Zero rate transaction is different from exempted transaction. Export not comes under Exempt category. Hence, you will have to register under GST if your annual turnover exceeds 20 Lakhs.

With respect to Claiming Zero rate benefit on your Export transactions :

You have two options

Option 1 : You will have to Pay IGST on your own on your export transaction value and apply for Refund with Govt Or

Option 2 : You will have to provide Bond / Letter of Undertaking with Bank Guarantee to Juridicitional Commissioner / Assistant Commissioner and get it approved before export any tranasaction without Payment of IGST.