Hi Team,
I am freelancer to overseas consultants, i will provide student to them and they will give us commission 60% if what they receive (Example as below).
Example :- 1000 USD (Consultant received commission ) * 60 % = 600 USD payable commission to me.
I was registered under GST and consultant also GST registered, as per my knowledge if any amount received from Export of services we are liable to pay IGST 18% if you don't have LUT & paid IGST 18% amount will be refunded within 60 days. ' But, they transferred amount on below calculations.
Example :- 1000 USD (-) 118 USD IGST 18% = 882 USD * 60% share = 529 USD
I have asked difference commission 600 USD (-) 529 USD = 71 USD
But, they not transferred amount and given below reasons :-
1)The classification of services provided by us on commission basis are not yet classified as Export Service. It states that we are performing the role of an intermediary and the place of supply is in India, therefore it is subjected to GST and will not be treated as export of services. The matter is under litigation for all previous financial years at Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai and the decision of the same is still pending.
Hence, in view of the matter pending at CESTAT level we cannot classify the receipts as export receipts and we are having to pay GST on all receipts.
2) Under Section 2(13) of IGST Act,2017 (IGST Act), intermediary has been defined to mean a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.
Section 13 of IGST Act determines the place of supply of services where either the location of supplier or the location of recipient is outside India. Here, default Section 13(2) provides that the ‘place of supply’ shall be the ‘location of the recipient’ unless the services falls within the ambit of specified sections from 13(3) to 13(13) of the IGST Act.
In pursuance of Section 13(8)(b) of the IGST Act, the place of supply in case of the ‘Intermediary services’ shall be the ‘location of the supplier of services’.
Can you please anyone give suggestion on this issue. please help me. please........................