My chartered accountant is asking 4000 INR every month. I get paid every two weeks – 3125 USD as a solo software‑engineer for a US startup. That's about 6250 USD a month or 75 000 USD a year. Since the money comes in dollars, it's an inward remittance. He tells me I can't claim GST refunds on things like a monitor or laptop unless I have an Indian client and get paid in rupees. I've tried to figure it out but it's confusing. Is this nonsense? I already have GST registration.
1. Your CA is mostly right about the refund issue.
2. But he's charging too much for the compliance work.
3. You don't need to file GST every month – quarterly filing is fine as long as your turnover is under 5 cr.
Your CA is partly right. You can claim the GST you paid on those items, but you won't get a cash refund because input credit on capital goods or fixed assets isn't refundable. That input credit will just sit in your GST portal until you make a domestic sale, which will create an output liability you can set‑off against the input credit.
You can file the GST return yourself; it's quite straightforward. Just refer to your earlier returns for guidance.
Wow, that sounds like a plot from the movie Ready!
Haha, my CA only charges 500 rupees a month for filing GST.
Do you charge GST on your earnings? Export of services is exempt under GST, so if you're not paying any GST, there's nothing to claim as a refund.
1. You don't really need a CA.
2. Log into the GST portal and switch to the quarterly filing mode.
3. Every quarter file a NIL GST return.
4. Twice a year log into the income‑tax portal and pay advance tax – roughly 12 % of your earnings.
5. Once a year complete the ITR on the portal, pay any balance and file it.
And hey, a cup of coffee would be a nice consulting fee ;)
He's correct about the GST refund, but he's overcharging you. You can find GST filing services for as low as 500 INR per month.
I earn roughly the same way you described. I have to file an annual GST LUT, a GST return each quarter, an annual GST return (if I'm not mistaken), and then my yearly ITR.
You can't claim GST benefits on purchases because you're not actually paying GST – that's what the LUT does.
My CA bills about 10 000 INR per year for all this, which is five times what you're paying. You should look for a new CA.
Bro, he's charging way too much. You can handle it yourself – switch to quarterly filing and watch some YouTube videos.
The government treats exports as "zero‑rated supplies." So you don't charge GST to foreign clients (rate 0 %), but you're still fully eligible to claim back the GST you paid on your business expenses.