Question ID : 31636

Service Export registration, if Mandatory?

Hi there, Export of goods and services mandatory under GST? Experts favoring mandation says its compulsory us 24(1) (Inter state taxable supply), the grand notification introducing 20lacs exemption for registration does not apply to export (as word used in notification is turnover on all India basis, thus meaning only domestic turnover). I think export (zero rated supply) falls under IGST, and 20lacs limit also applies to IGST, it would be just and equitable to extend turnover limit to export and thus export with 20lacs turnover limit need no registration. However in absence of registration such unregistered exporter may not get ITC or refund benefit under GST. As far only Indian turnover to be used is concerned, I think this is wrong interpretation. The words "to be computed on all India basis" should not be given meaning that only domestic turnover is included, especially when we talk of aggregate turnover in which export is specifically included. Further if government intends to provide support to export then interpretation should be more elaborated and inclusive so as to service and help small exporters. I think term all India basis means domestic+export turnover and not only domestic turnover. In other words all India basis means turnover originating from India. Had government intended to restrict meaning only to domestic turnover they could have used Indian turnover rather saying on all India basis. By using all India basis mean, an Indian entity which also has presence and operations abroad, then only turnover from India shall be calculated and not worldwide. Im not sure if any gst related authority has categorically mandated export registration irrespective of turnover. If someone has anything in written from authority saying manadatory export registration, plz share with me.

Answer ID : 68645

My dear sir, it is mandatory because inter state supply is required compulsory registration. Since export service is out of india hence need registration.

Answer ID : 68674

Export of Service is an Interstate supply and is under mandatory registration us 24. However, it may be noted that for SERVICE providers specific exemption has been provided via notification no. 102017(IT) wef 13.10.2017 from registration till the turnover reaches 20 Lacs. So in case of service exports, registration not mandatory, however for goods it is mandatory.

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