Gst on commission received in foreign currency

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This query is : Resolved

CA AKASH GUPTA (Querist)

04 January 2018 Hello,

I have a company in New Delhi and receive commission as agent of foreign company. Here is how it work:

- A foreign company, which does not have any entity in India, let’s call it "Taiwan", appoints me as an agent.
- I visit companies in India who are interested in the products of company "Taiwan"
- Let’s say company "India" wants to buy product/services from company "Taiwan"
- Company "India" will place order directly with company "Taiwan" and company "Taiwan" will ship to company "India".
- Company "Taiwan" will send me commission directly to my bank account as per our agreement @2 % quarterly.

My Question is
1. Whether is it considered as export of services & after paying IGST on same will claim refund ?
2. If it is not considered as Export then Wheter I have to do reverse calculation on commision & deposit GST @ 18 % on it from my own pocket ?

Udaya Chandran

Udaya Chandran (Expert)

06 January 2018 Yes, it is export of service only when you receive the amount in convertible foreign exchange currency.
You can pay IGST and claim refund or you can export the services under LUT.
Yes, if you want to pay IGST and claim refund, you need to pay from your pocket and claim refund.

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