Commission Income from Foreign entity for arranging business

[Balakrishnan Ramalingam]

My client have received Commission in US$ for arranging business connection between two parties both in foreign. Subsisting agreement available with the supplier of goods (foreigner). Pl advise on applicability of GST on above transaction. Also Which GST ? IGST or SGST/CGST?

Thanks

AI Summary

Intermediary services treated as taxable with IGST when supplier is located in India; export zero rating or refund options queried.
Commission earned in foreign currency for arranging business between two foreign parties is characterized as intermediary services with the place of supply at the supplier in India, rendering the supply taxable and attracting IGST. The querist asks whether the service qualifies as export for zero-rating via a Letter of Undertaking or whether IGST may be paid and later refunded; respondents point to the statutory intermediary definition and an AAR decision for guidance.