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GST on foreign sales commn

N.VENKATARAMAN (FINANCIAL CONSULTANT) (56 Points)

21 May 2018

does foreign sales commission attract GST?

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7 Replies

Vinod Babu (24196 Points)
Replied 21 May 2018

The case is of import of service. Hence, IGST is applicable @ 18%.

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N.VENKATARAMAN (FINANCIAL CONSULTANT) (56 Points)
Replied 21 May 2018

could you please give the relevant section

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 22 May 2018

Dear Venkatraman can you elobrate your query (as pos is matter)

N.VENKATARAMAN (FINANCIAL CONSULTANT) (56 Points)
Replied 22 May 2018

exporter has to make foreign sales commission to buyer/agent in abroad. POS is foreign country. does this foreign sales commission payable attract GST. If yes, where to show in GST return and is it eligible for ITC as RCM.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 22 May 2018

DEAR VENKATARAMAN

AS PER THE DEFINATION IGST ACT 2(13) AGENT FALLS UNDER THE INTERMDIATRY SERVICES & AS PER SECTION 13(8) IGST ACT , IN CASE OF INTERMEDIARY SERVICES THE POS IS THE PLACE OF SUPPLIER & SUPPLIER IS OUT OF INDIA

SO, NO GST IS APPLICABLE