Hello Sir/Mam,
I am a trade broker, please help me to understand if i have any gst/igst liability. The buyer is based in dubai for the commodity, The seller is based in germany for the commodity. I get commission monthly and it’s a 12 months contract since I acted as an intermediary in the trade. I will receive money as foreign inward remittance. Do I have to pay IGST on the amount received? Why? neither the buyer, nor the seller is from india. How much Igst i have to pay?
Indian Broker's Commission for Dubai-Germany Trade Subject to 18% IGST Under Section 13(8)(b) of IGST Act A trade broker inquired about GST/IGST liability for receiving commission from facilitating a trade between a buyer in Dubai and a seller in Germany. The broker, based in India, receives the commission as foreign inward remittance under a 12-month contract. The response clarified that GST is not applicable for goods traded between non-taxable territories. However, since the broker provides intermediary services from India, it does not qualify as an export of service. According to Section 13(8)(b) of the IGST Act, the service is taxable in India, with an IGST rate of 18% on the brokerage received. (AI Summary)
TaxTMI 
TaxTMI 
