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Someone please help. looking for clarity for last 5 months but no one can provide answers

Tax_Noob (Taxpayer) (39 Points)

25 April 2022

Someone please help me, Im losing hope. Looking for clarity on my issue for last 5 month but no one can clarify.

Upwork is foreign company and classified as E-Commerce platform. So this question basically may come down to "Are sellers (me) of services liable to pay GST via RCM on commission charged by foreign ecommerce platforms"?

Frustrating thing is I try to find GST rules regarding this but can't find anything that clarify the situation. Read tons of article and talked to CAs but this thing is going no where. And meanwhile I'm probably violating many GST rules as I can't even figure out what the rules are. SO FRUSTRATING

Issue:

https://www.caclubindia.com/forum/am-i-liable-to-pay-gst-under-reverse-charge-mechanism--584965.asp

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7 Replies

Rajendra Prasad (Employee Private) (1824 Points)
Replied 25 April 2022

In my view and knowledge, what ever the services provided by you shall be Export of Services and It is "Zero Rated supply" subject to Section 16 of IGST Act.

And also what ever commission, paid by you is import of services on which you have to pay IGST under RCM as per Sl.No.1 of the Notification No.10/2017-Integrated Tax (Rate ), DT.28/06/2017.

However, It is better to file Application against Advance Ruling Authority on the issue in your State.

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Ajitesh Ramteke (30 Points)
Replied 25 April 2022

As way you explain, Upwork company is a commission agent who charges commission on transaction amount {as per CGST Act section 2 (5)}and there is no bifurcation made in GST law for Indian and foreign commission agent. so we conclude that GST law is applicable not only to Indian commission agent but also foreign commission agent as well and based on that you have to pay IGST in RCM.
If you still confused, you can apply to AAR.

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Tax_Noob (Taxpayer) (39 Points)
Replied 25 April 2022

Originally posted by : Ajitesh Ramteke

What about this? Few CAs says when intermediary is located outside India, place of supply is ouside india and no RCM on commission. https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=114945

Tax_Noob (Taxpayer) (39 Points)
Replied 25 April 2022

How to apply to AAR?

Rajendra Prasad (Employee Private) (1824 Points)
Replied 25 April 2022

Goods & Services Tax (GST) | Returns Offline Utility Please go through the link.

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Ajitesh Ramteke (30 Points)
Replied 25 April 2022

Exempted supply and zero rate supply is two different things. Exempted supply means when the goods or services and totally outside of boundry of GST and GST Law Doesn't consider them nether as Goods nor as Services. However Zero rate supply means goods or services are covered by GST Law and it Charged zero rate for supply of them. Export of Service or Goods are Zero rate supply. which means GST is chargeable to export but as zero rate.
In your case, you exporting services to recipient who situated out side India, which charge zero rate GST (but still it chargeable) by using services of Upwork company. which means you are a supplier and bill is issued in name of you or behalf of you to recipient and company charge commission for that whole services. As per my interpretation you paying commission for using their portal services. so we can assume that this is the import of service which is payable to gst even if it is for further business or not.
my conclusion is that, you are the supplier who export the service out side India and Upwork company issue bill by using your name as a supplier to recipient and charge commission for that all services. which means use of company portal services is import of service for you and you have to pay gst.

However my humble request to you to fill request in AAR for more clarification and please share one copy with me as well.

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