GST on sales representation of a foreign company in India

Amit Mittal (CA) (43 Points)

13 April 2020  

I am a private limited company in New Delhi, and I represent a European company for aviation equipment as their sales agent.

The company I represent in based in France and I visit companies in India to promote their products. Once an Indian company places the order directly on the French company, the goods are delivered as per the terms agreed.

For the transaction, I receive a certain amount as a commission on the sales.

For the commission that I receive from the French company: -

  1. do I need to charge GST, since the company is based out of India and for them, it is a cost with no recovery?
  2. What happens if the sales are concluded on high seas, or foreign territory, e.g. Indian customer visits France/ any other foreign country to sign the agreement?
  3. Is there a way that the agreement between myself and the French company be optimised for GST?