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?

[VAMSI KRISHNA]

Dear querist,

your contension is right it is intra state supply.

thanks.
 

[Kishan Barai]

1. The services provided is with regards to any goods as given in Section 13(3)(a)?
2. Whether payment is received in foreign currency?
3. Have you raised any Invoice to Foreign Service recipient?

it is an intra-state supply CGST and SGST is applicable

AI Summary

Place of supply for intermediary services determines intrastate levy and CGST and SGST applicability when supplier is domestic.
The query asserts that for commission relating to abroad transactions, the place of supply rule for intermediary services makes the supplier's location the place of supply; with the supplier located in the same State, the supply is treated as an intra-State supply and CGST plus SGST apply. Respondents agreed with the intra-State characterization while noting additional factual points (relation to goods, payment currency, invoicing) relevant to compliance.