GST queries

[Yatin Bhopi]

Dear experts,

Below are some of my queries please share your views

1. We pay commission to foreign vendor who facilitate to find customers. But as per POS rules GST is not payable in such case.

Q. Whether this will be treated as exempted supply? (applicability of reversal of proportionate ITC)

2. There are some supplier who charged freight charges in their bill but not pay GST saying that GST payable by receipt. But actual freight is paid by supplier to the transporter and not by us.

Q. Who is liable to pay tax?

3. We purchase goods on ex works basis. We also insured our goods against damage, accidental, theft etc. As per Section 17(5) we are not eligible to avail ITC if goods lost.

Q. In case of accident of tanker, insurance company settle our claim including GST amount. Is there any issue?

4. We raise debit notes to the transporter to recover excess shortages received in material lost in transit. Our raw material is of evaporation nature and travel long distance which cause shortages. We have set some acceptable loss percentage say 0.4%. If we found that loss occurred more than this limit we recover it from transporter

Q. Whether such recovery from transporter attract GST?

AI Summary

GST on Foreign Vendor Commissions Subject to Reverse Charge; Freight, Insurance, and Debit Note Clarifications Provided A user sought guidance on several GST-related queries. The first query involved paying commissions to foreign vendors, questioning if this is treated as an exempt supply. Responses indicated it is an import of service, subject to reverse charge mechanism (RCM). The second query concerned freight charges, clarifying that the supplier is liable for GST under RCM. The third query involved insurance claims on lost goods, stating no issue arises, but ITC on lost goods is not available. The fourth query discussed debit notes for excess shortages, indicating GST is applicable, and proper invoicing is necessary. Various experts provided insights, agreeing on the applicability of GST and procedural requirements.