Export of service


The foreign subsidiary(US incorporation) remits funds to Indian parent firm in USD with transfer pricing taken into invoice. Will this transaction icur GST or will it be considered as export of service?


It will be considered as export. There are reasons - first you are selling something to other business from India to another country and you are getting payment in USD. Second it doesn’t matter whether it is a subsidiary or not. Transfer pricing is your internal way of dealing.


We are mobile game developers and our games are available on Apple, Google and Facebook platforms. 99% of our users are from outside India. Our users download our games from the 3 platforms mentioned and these platforms then remit the funds to us. Do we need to pay GST on the money we receive from these platforms?


If you are getting paid in foreign currency or the buyer is from other country then you should sign a undertaking with bank for exemption for GST with the help of your CA. For Indian buyer you need to pay GST if you are registered tax payer. If you are not registered tax payer then you don’t need to pay GST till you cross 20,00,000 INR. After having turnover 20,00,000 you need to register for GST.