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GST on Commission Received from Foreign Company

17 December 2021

Dear Sir/Madam,

I am overseas education consultant. Many students are studying in foreign university for higher education. I organize the courses from university to students. In this case universities are paying fixed commission to me without GST.

Receipent outside India. Services provided Outside India. I am in India. Commission received in foreign currency.

In this case I am liable to pay IGST @ 18% or not.

Kindly advice.

Thanks

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12 Replies

Rajendra Prasad (Employee Private) (1824 Points)
Replied 17 December 2021

The services, which you have provided are "Zero Rated" as per Section 16 of IGST Act, subject to some procedures. You have to file bond or LUT through online for with out payment of IGST, or has to pay IGST with out submission of Bond.

Refer section 16 of IGST Act.

anil jain (Partner) (1067 Points)
Replied 20 December 2021

I agree with Mr Prasad

Harendra Rawat (24 Points)
Replied 20 December 2021

Sir,

LUT submitted with Bond.

Harendra Rawat (24 Points)
Replied 20 December 2021

Sir,

LUT submitted with Bond. If yes, the Total Value of IGST is in bank guarantee format.

anil jain (Partner) (1067 Points)
Replied 20 December 2021

Now u need to file gst returns under zero rated supply for it.

Rajendra Prasad (Employee Private) (1824 Points)
Replied 20 December 2021

No, not as per Bank guarantee format. Through bond in online, undertaking to pay tax on the said turnover as and when the liability araised I any case.

Varun Gupta (7 Points)
Replied 10 May 2022

It is taxable service as you will be treated as intermediary and in this case place of supply will be deemed to be your place of business not foreign country.

1 Like

CA. Rohit Porwal (CA Practice) (132 Points)
Replied 04 May 2023

Agree with Mr Varun Gupta. This same case has been discussed and file before AAR and AAAR West Bangal in case of Pulak Kunar Saha, where ruling was pronounced the service provided by an agent, broker or an aggregator whatever name called to a foreign university for promoting foreign courses in India will not be treated as export of service. Rather it will fall under Intermediary as per section 2(13) of IGST ACT.

A S (Accountant) (2 Points)
Replied 13 May 2023

Mr Porwal, can you please state the exact case name or court ruling date.

Thank you

CA. Rohit Porwal (CA Practice) (132 Points)
Replied 13 May 2023

AAAR Ruling No. 01/WBAAAR/Appeal/2018 dates 26-04-2018 in case of Pulak Kunar Saha.

kindly refer about ruling. Thanks

Harendra Rawat (24 Points)
Replied 14 May 2023

Sir, As you mention "foreign university for promoting foreign courses in India" But in our case Indian students enroll in a foreign university outside India.