GST on commission paid to foreign agent

[JIGAR SHAH]

We are paying commission to a foreign agent against export orders. RCM will be applicable or not?

AI Summary

GST and RCM not applicable on commissions to foreign agents; service classified as intermediary with supply outside India. A query was raised about the applicability of GST and Reverse Charge Mechanism (RCM) on commissions paid to a foreign agent for export orders. Respondents clarified that since the service is considered intermediary and the place of supply is outside India, GST and RCM are not applicable. One participant shared a related issue involving litigation over service tax on foreign-based booking portals, highlighting a decision to pay GST for commercial reasons despite the tax being revenue-neutral. The discussion concluded with expressions of gratitude for the shared insights and experiences.