GST on Commission Received from Foreign Company

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

Replies (12)
Quick Summary
An overseas education consultant based in India receives commission from foreign universities for enrolling Indian students. The consultant is seeking clarification on whether they are liable to pay IGST on this commission, as the services are provided to recipients outside India and the commission is received in foreign currency. While some suggest it's a zero-rated supply, others argue it falls under 'intermediary' services, making the place of supply India and thus taxable.

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.

I agree with Mr Prasad

Sir,

 

LUT submitted with Bond.

Sir,  

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

 

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

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.

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.

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. 

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

 

Thank you

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

 

kindly refer about ruling. Thanks 

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.

Yes, that is the same meaning. Service to foreign university for promoting and enrolling Indian Student. 

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