Domestic 18%. Export of services ZERO-rated via LUT. SaaS, software, app dev, web design, consulting all 18%. Foreign SaaS (AWS, Azure) via OIDAR.
IT SERVICES GST: (1) DOMESTIC IT services: 18%. (2) Software development, web design, app dev, SaaS, cloud: all 18%. (3) DIGITAL MARKETING: 18%. (4) CONSULTING + advisory: 18%. (5) EXPORT OF SERVICES: ZERO-RATED (0%) via LUT. (6) DOWNLOADED SOFTWARE: 18%. (7) PACKAGED SOFTWARE (CD/installation): 18%. (8) ONLINE SUBSCRIPTIONS (Netflix, Spotify): 18%. KEY: most IT services 18%. Export benefit via LUT critical.
EXPORT OF SERVICES (zero-rated): Indian IT companies serving foreign clients can use ZERO-RATED supply. (1) FILE LUT (Letter of Undertaking) instead of paying IGST. (2) Refund of input ITC available. (3) CRITICAL conditions: (a) Payment in FOREIGN currency. (b) Recipient in foreign country. (c) Service supplier in India. (d) Place of supply in foreign country. (4) FOREIGN CONSULTING + SAAS + DEVELOPMENT: zero-rated. (5) LIMITS: foreign clients only — not Indian-resident clients in foreign country.
SAAS SUBSCRIPTION GST: (1) INDIAN PROVIDERS (Razorpay, Zoho, Freshworks): 18% GST. (2) FOREIGN PROVIDERS (AWS, Azure, Google Cloud): collect GST under OIDAR rules (18%). (3) SLACK + ZOOM + GITHUB: 18% via OIDAR. (4) SOFTWARE LICENSES: 18%. (5) DEVELOPER TOOLS: 18%. EXAMPLE: ₹1L annual Zoho subscription. (a) 18% GST = ₹18K. (b) Total ₹1.18L. (c) Business buyer: ITC available. (d) Individual: GST cost absorbed.
FREELANCER GST: (1) TURNOVER > ₹20L (services) / ₹40L (goods): GST registration mandatory. (2) RATE: 18% on services. (3) DOMESTIC clients: 18% GST + ITC. (4) FOREIGN clients: zero-rated (export). (5) IT CONSULTANTS, designers, content writers, developers: 18%. (6) UPWORK + Fiverr earnings: GST applicable per India rules. (7) NRO/foreign earnings: separate FEMA rules. STRATEGIC: freelancers > ₹20L should register + invoice with GST. Foreign clients prefer LUT export.
IT GST STRATEGY: (1) EXPORT FOCUS: use LUT for zero-rated supply. Refund full ITC. (2) SaaS PROVIDERS: factor 18% in pricing. (3) DOMESTIC CLIENTS: invoice with GST + claim ITC on inputs. (4) FREELANCERS > ₹20L: GST mandatory. (5) FOREIGN clients via online platforms: zero-rated benefits. (6) REGISTRATION threshold to plan. (7) MONTHLY GSTR-3B + GSTR-1 returns. (8) DIGITAL ASSETS (NFT, crypto-based): separate rules. (9) IT SEZ units: separate exempt + Section 10AA benefit. (10) CONSULT IT-specialist GST CA for export refund + complex compliance.