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GST on Inward Commission

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Nimesh joshi

Office Executive

53 Points Posted on 20 May 2023

We are getting commission from a Germany company for sale of there production in INDIA. Orders placed by buyer directly to German company and material dispatched directly to buyer in INDIA. We get certain % as commission.

Is GST applicable on such commission ?

Will this be under Local GST or IGST ?

As we have to make E-invoice, how will be reflected in GSTR-1

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicability on commission earned by an Indian entity for facilitating sales of German company's products in India. The commission is considered an intermediary supply, and as per the IGST Act, the place of supply is deemed to be India, where the intermediary is located. Therefore, Central GST (CGST) and State GST (SGST) are applicable. Guidance is also provided on how to reflect this in e-invoices and GSTR-1 returns, referencing relevant sections of the IGST Act and GST Circular 159/2021.

sabyasachi mukherjee

Profession

19978 Points Posted on 20 May 2023

Post datas.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 20 May 2023

As per Section 2(3) IGST Act it's seems to be Intermediary supply & As per Section 13(8) of IGSt Act the place of supply in respect of Intermediary supply is where the Intermediary supplier is located.
Hence you (Intermediary) located in India the POS is india(your state) hence CGST/SGST leviable.

Note : Can also refer Circular 159/2021 GST