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Gst applicable or not

Arun Kumar R (accountant) (25 Points)

02 March 2018

Hi sir

any private limited company received commission above 25 lakhs in dollers.gst applicable or not. how to raise the invoice for foreign customer

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4 Replies

pankaj (a) (1262 Points)
Replied 02 March 2018

which service u provide ?

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Vinayak Hegde (CA) (154 Points)
Replied 02 March 2018

Hi Arun,

GST will be applicable on reverse charge basis. As GST registration for person paying GST on RCM is mandatory, the company has to get a registration and pay the GST on RCM.

Arun Kumar R (accountant) (25 Points)
Replied 02 March 2018

Thank you very much sir, but invoice raise or not to foreign customers

Vinayak Hegde (CA) (154 Points)
Replied 02 March 2018

Just for clarification. If you are providing service and receiving comission, since the amount is more than 20 lakhs, you have to register under GST and issue GST invoice. RCM compes into play when you are paying for the service imported.

So I think I was wrong earlier. In this case RCM will not apply. Since you are receiving the comission, you have to issue GST invoice.