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

Reverse charge on imported services applies to commission paid to foreign vendors, affecting input tax credit and compliance.
Commission paid to foreign vendors is an import of services subject to reverse charge, making the recipient liable for tax and affecting ITC; freight charged separately by a supplier must attract GST which the supplier remits and may claim as ITC if applicable; ITC is not available on goods lost or destroyed and insurance settlements do not confer ITC; recoveries from transporters for shortages or poor service are treated as adjustments to consideration and attract GST, requiring proper invoicing and declaration in returns.