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GST computation on Commission received in Forex

341 views 4 replies

Please guide me on how to compute GST on Commission received from Foreign Principal. 

Gross receipts =100USD

Is

a)  GST to be charged on 100 USD  ( then commission @ 18% = USD 18)

or

b)  100 USD treated as inclusive of GST? (then commission @ 18% = USD 15.25)

 

 

Replies (4)
GST will be calculate on 100USD as per convert to INR...

Thank you for your reply.

The Foreign Principal will not pay the IGST.

Agent's Invoice to the Foreign Principal will be for USD 100 and Foreign Principal will remit only USD 100.

So cannot the following apply?

Where the value of supply is inclusive of integrated tax or, as the
case may be, central tax, State tax, Union Territory tax, the tax amount shall be determined in the following manner, namely,-
 
Tax amount = (Value inclusive of taxes X tax rate in % of IGST or, as the
case may be, CGST, SGST or UTGST) ÷ (100+ sum of tax rates, as applicable, in %)

 

 

 

Foreign principals can't give GST amount or not applicable to them...

As per GST Export of services is atract under rcm. You only pay the Gst under IGST head...

Some of the rules applicable for exports. Please refer some details about Exports...

Sir,

I just came across Order No. MAH/AAAR/SS-RJ/26/2018-19 dated 22.03. 2019 by Maharashtra Appellate Authority for Advance Ruling for GST in the Appeal filed by Micro Instruments against Advance Ruling no. GST-ARA-23/2018-19/B-87 dated 10.08.2018.

Whereby the question of Intermediary services to a Foreign Principal by an Indian Agent are an Export has implicitly gone in favour of the Appellant as the Appellate struck down the impugned Advance Ruling which was in favour of Revenue.

 

 

 

.

 

 

 

 


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