I am App developer for Android(Google Play Store).
My app is online for last two years, but it was free. I introduced advertisements and in-app purchases in my app on March 2. I started getting income from March 2, 2019.
I read online about GST liability, and according to the original GST law, everyone who does interstate sales, is liable for registration, so I registered for GSTIN effective from March 2.
Later I learned that a notification was issued that 20 lakhs limit applies to providers of interstate services too. So I applied for cancellation of my GSTIN on 9 April 2019, effective from 2 March 2019.
But it has been more than 30 days, it is still showing as “pending for processing” and is assigned to state. The GST website clearly says 30 days is the time frame for cancellation. I called up the Helpdesk number mentioned on services.gst.gov.in, and they said there is no such time limit for cancellation.
I would have had no issues, but the thing is with the old users buying the app, my turnover has crossed 20 lakhs now.
I want to know what should I do now? Since my old GSTIN is still pending for cancellation.
Also, I would like to avail services of CA(for filing my GST returns and book keeping) who have experience in filing GST for app developers, as
1. most of my sales happen in foreign countries, and Google charges the users on my behalf and takes cut of 30% and pays me in INR. Since exports are zero rated, I shouldn’t have to pay GST for the sales outside India, but since I receive payment in INR and not in convertible foreign exchange, I am not sure how to proceed in this case.
2. I don’t know if my turnover would include the amount paid by customer(which includes their local taxes) before Google takes its cut or after Google takes its cut, as I am paid by Google(on monthly basis) and not the customer directly. Google provides me with the location and currency details of the buyer and the amount paid by them( different users can pay different amount)
3. Google asks for GSTIN of Indian app develoepr is GST is to be levied on Indian customers purchasing the app. If app developer doesn’t provide GSTIN, no GST is collected by Google from Indian customers.
But for foreign app developers(who don’t need to furnish GSTIN to Google), Google collects GST from Indian customers and pays it to the government.
Thank you for you help.
Thanks for detailing out the whole case. While you have applied for cancellation, you can revoke for it’s processing and need to approach your jurisdiction officer. As far as your GST liability is concerned, if you can obtain a FIRC for all your transactions done with foreign customers, you would be eligible to claim a refund of such GST paid (via Google).
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Hope this will be helpful.Thanks