GST on Commission received

[Kaustubh Karandikar]

XYZ (Punjab) receiving commission for abroad on which GST is paid. As per Section 13(8) of IGST Act the POS in case of intermediary services is the location of the supplier of services. Accordingly, the POS would be Punjab. Further the location of supplier is also Punjab and therefore as per Section 8(2) of IGST Act it is an intra-State supply and thus CGST + SGST will apply. Is my understanding Correct?

AI Summary

Intermediary Services in Punjab: GST Applies as Intra-State Supply Under Sections 13(8) and 8(2) of IGST Act XYZ, based in Punjab, is receiving commission from abroad and paying GST. According to Section 13(8) of the IGST Act, the place of supply (POS) for intermediary services is the supplier's location, which is Punjab. Since both the POS and the supplier's location are in Punjab, Section 8(2) of the IGST Act classifies this as an intra-state supply, requiring CGST and SGST. Responses confirm this understanding, with additional queries about the nature of services, currency of payment, and invoicing to foreign recipients.