Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Foreign commission on export sale

09 July 2017

Is there GST applicability on foreign commission paid to overseas agent located abroad and who do have any office or business entity in India

Reply
Follow
Share

9 Replies

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

no gst applicability as place of supply outside india

Rama Krishnan (2 Points)
Replied 09 July 2017

yesterday I went to a briyani shop. they put two get in the bill. is this correct....?

Sandeep Thapar (32 Points)
Replied 09 July 2017

I doubt, I think first I deposit GST on commission then to apply for refund is it??

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

no this is not case of refund as per sec 54 of CGST Act. As commission agent sitting outside india and provides service from there, in this case place of supply outside india, so no gst in normal charge.
However your gst liability may arise in rcm if your paying exceeding 5000 in a day to this unregistered agent

Sandeep Thapar (32 Points)
Replied 09 July 2017

5000/- per day means 1.50 lac in a month. But we normally pay 1 cr foreign commission in a year then is there our GST liability in rcm

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

yes your liability arise in rcm

PUNEET (ARTICLE) (27 Points)
Replied 18 August 2017

The Agent in a Foriegn currency, and obviously he is unregistered , So accordingly GST is liable to pay in RCM by reciver of services.

girish pareek (25 Points)
Replied 15 January 2018

If Commission on Sales Export is paid by a Special Economic Zone then what is Implication of Goods and Service tax in this Regard . Please Explain with reference of relevat provision in Act ??