30 December 2019
Hi, I am working in a buying house .We just provide services (Home decors Items ) from India to out side India And we receive some commission amount from outside India also. and on this Overseas commission invoice we pay GST to Indian government .We pay SGST and CGST on that comm. invoices under SAC code 9961 My queries is that 1. We charge SGST and CGST instead of IGST is it ok ? i have also read Mr. M. GOVINDARAJAN quote against this but there is no clear conclusion . 2. Can we refund this GST only on Overseas invoices ? any option ?
Any GST expert which i can talk on call ? Please advice me
31 December 2019
On overseas commission, IGST is required to be paid. You should pay the correct taxes, and claim refund of CGST/SGST paid under Section 77 of the CGST Act.
04 January 2020
Sir as we mentioned in my query that we are just service provider not any kind of exporter . We do not export services and good we just provide services as a intermediary . So in this case what would we applicable in GST (IGST and CGST & SGST )whereas i read that POS will be applicable in this condition but i am not 100% sure.Please clear this .
On other hand when it is a Intermediary services then how can we do refund process on overseas invoices . We know that tax refund on overseas invoice only for exports of goods and services but for intermediary services i am in doubt . Please clear also for that . if any option for refund ? please let me know
08 January 2020
Thanks Tanuja for clarification, it has cleared a wrong perception in my mind. You are correct in saying that place of supply for the intermediary services is your own location [Section 13(8)(b) of the IGST Act], and hence it is an intra-state supply [Section 8(2) of the IGST Act]. Thus, your have paid CGST/SGST correctly. Thanking you again. I stand corrected.
13 January 2020
When intermediary services are provided to overseas service recipients, it does not amount to the export of services and there is no provision to refund of the taxes paid. However, one need to examine if the services are "intermediary services" or not. This article of mine may help you in correct determination of intermediary services- http://www.mondaq.com/india/x/878488/sales+taxes+VAT+GST/Meaning+of+Intermediary+Services+under+GST
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