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Indenting agent - point of taxation

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Nirav Gandhi

21 Points Posted on 11 March 2021

Sir,

I am indenting agent and receiving commission on sales of goods. I issue invoice to overseas principal once every quarter - my question is when is GST payable?

example

Sales during Jan - March 2021 : Invoice to be raised during April 2021. Payment received from overseas supplier in April 2021.

GST payable: During May 2021

Is this correct?

Should I issue invoice every month even though my principal remits payment only once after end of each quarter?

Thank you.

Replies (2)

Quick Summary

This discussion clarifies the GST payment timeline for indenting agents earning commission on overseas sales. The core question is when to issue an invoice and pay GST, especially when payment is received quarterly. The advice given suggests that for services spanning over three months, it's better to issue monthly invoices or invoice on the earlier date of payment receipt to comply with GST regulations, which require invoices for services to be issued within 30 days of the supply date.

Rajkumar Patel

373 Points Posted on 12 March 2021

You has to raise invoice on date of earlier of Payment received if you are providing service for more than 3 montha

anil jain

Partner

855 Points Posted on 14 March 2021

Better to raise monthly invoice.

The invoice referred to in rule 46, in the case of the taxable supply of services, shall be issued within a period of thirty days from the date of the supply of service