Service rendered in india on behalf

This query is : Resolved

Bhakti (Querist)
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01 August 2018 For promotions and campaigning we get consideration from Foreign customer in Foreign Currency.
We are doing promotions and campaigning on behalf of foreign client. We are in Trading business not advertising agency,

Query:
Do I need charge GST on Foreign Receipt?

If answer is Yes

IGST or CGST & SGST will be applicable.

Bhakti

Bhakti (Querist)
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01 August 2018 Expense incurred on behalf of foreign client get reimbursed in Foreign Currency. Raised Debit Note to adjust receipt.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2018
These services are concluded to be provided by the intermediary, the place of supply will be that of the intermediary. Hence GST applicable.

Bhakti

Bhakti (Querist)
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01 August 2018 Thank you sir, Now it is confirned that GST will be application. The place of supply or service is with in same state so in this case CGST &SGST will be applicable and vice versa

Nilesh

Nilesh (Expert)
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03 August 2018 In my view it is sales promotion activity and hence it would be qualify as export since for intermediary you should act as facilitator between 2 or more person .. basis of consideration is not relevant.. if you wish to charge then you should charge IGST - as it would not covered in section 12 and hence out of purview of section 8(2) however in industry & as per FAQ it should be CGST + SGST

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