Impact of GST on Service Provided in Third Country

[Lokesh Kumar]

This year in the month of April I went to Belgium to attend a trade show, there I met an exporter from Cuba and introduced them to an importer in Taiwan. The Cuban exporter has started shipping cargo directly to the Taiwanese importer.

The Taiwanese importer has committed to pay us USD 2500 per consignment for introducing them to the Cuban exporter. Will there be any GST on the payment which we may receive on such transactions?

Kindly note the following:

• Exporter is from Cuba: Not in India
• Importer is from Taiwan: Not in India
• Service provided in Belgium: Not in India
• Money received: In US Dollar in India

AI Summary

Place of supply for intermediary services determines GST liability; provider location may make foreign commissions taxable in India.
Whether GST applies to commission for introducing two foreign parties depends on IGST place of supply rules and intermediary characterisation. One view treats intermediary services as supplied at the provider's location, making receipt in India taxable; another view holds the service occurred outside India and mere receipt of foreign currency in India does not create taxable supply. The legal distinction between consideration and supply is emphasised, and resolution requires applying IGST place of supply provisions to the specific facts.