GST on Commission paid to foreign company/Non Resident

[Prakash Gupta]

Dear All,

My company has paid commission to various foreign agents (company as well as non company) during July to October 2017. Your view is sought on applicability of GST on such payments under section 9(4) of the CGST Act.

Thanking you !

[CSSANJAY MALHOTRA]

Commission paid to Agents based abroad are not subject to payment of GST, as the place of provision of service in case of intermediary is the place where he is based at. (place of service provider).

[Prakash Gupta]

Thank you Malhotra Ji for your reply. Please also quote reference (section) of the law.It would be great help.

[CSSANJAY MALHOTRA]

IGST Act,section 13(8) (b)

[Prakash Gupta]

Thank you Malhotra Ji

AI Summary

Place of provision of services: commission to foreign agents falls outside domestic GST when provider is located abroad under IGST rules.
Commission payments to foreign agents treated as intermediary services are not subject to domestic GST because the place of provision is the service provider's location abroad, relying on the IGST provision on place of provision for intermediaries.