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GST on Inward Commission

274 views 2 replies

Nimesh joshi

Office Executive

88 Points Joined April 2013

We are getting commission from a Germany company for sale of there production in INDIA. Orders placed by buyer directly to German company and material dispatched directly to buyer in INDIA. We get certain % as commission.

Is GST applicable on such commission ?

Will this be under Local GST or IGST ?

As we have to make E-invoice, how will be reflected in GSTR-1

Replies (2)

sabyasachi mukherjee

28018 Points Joined May 2017

Post datas.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

As per Section 2(3) IGST Act it's seems to be Intermediary supply & As per Section 13(8) of IGSt Act the place of supply in respect of Intermediary supply is where the Intermediary supplier is located.
Hence you (Intermediary) located in India the POS is india(your state) hence CGST/SGST leviable.

Note : Can also refer Circular 159/2021 GST