Amount to be received from abroad

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A query regarding GST implications for receiving a Rs. 40 Lakh commission from abroad on behalf of four individuals. The consensus is that this constitutes an intermediary service, attracting an 18% GST. It's clarified that this does not qualify as an export of service, meaning a refund cannot be claimed. The individual is also advised to register under GST.

AKSHAY JANGID

AKSHAY JANGID (Querist)

16 June 2020 Dear Experts,

One of my friend has to received an amount of Rs. 40 Lakh from abroad as commission income. The amount is to be received on behalf of 4 persons.

Please let me know if there is any GST implications on it.
Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 June 2020 18% GST applicable on such income treating it as intermediary service.

AKSHAY JANGID

AKSHAY JANGID (Querist)

17 June 2020 Thanks for the reply sir,
Can i claim refund of the same treating it as export of service.
And presently i am not registered under GST, Shall i take registration.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 June 2020 The service provided is intermediary service and it will not fall under export of service hence no refund can be claimed.

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