Commission on Indent received from outside India

[Rakesh Kabra]

What should I pay-CGST/SGST or IGST on commission income received from outside India??

[KASTURI SETHI]

There are so many factors to arrive at correct decision. Pl. elaborate your query. Whether supply of goods or services involved ? What is status of the firm ? Any related person issue ?

[KASTURI SETHI]

Prima facie, IGST is applicable because inter-State supply of service is involved.

[Atul Rathod]

Both the views are possible and highly debatable. would suggest you to pay C+S.

[Rakesh Kabra]

Sir this question is for a Rajasthan based company , which is receiving commission from out side India . This company procures order within rajasthan to which direct supply is done by the foreign company, there is no issue regarding taxability, rate and nature of service which is intermediary service taxable @18%, but levy of CGST/SGST or IGST is a big question for us

[Atul Rathod]

both the views are possible based on following;

1. C+S would be applicable as POS would be place of performance i.e Rajasthan and location of supplier is also in Rajasthan = therefore intra state= C+S

2. IGST is applicable as Sec 8 (intra state) refers to sec 12 related to POS whereas POS related to intermediary is given in sec 13. Therefore the said transaction doesn’t fall under sec 8. And anything which does not fall under sec 8 would fall under sec 7 (inter state). Theodore IGST would be applicable.

3. As per AAR (Maharashtra) and FAQ releases by CBIC (C+S) is applicable.

4. As per my personal view C+S should be applicable as state and central would get equal revenue.

5. I hope this could help you.

AI Summary

Place of supply rules determine IGST or CGST+SGST on cross-border intermediary commission, producing divergent positions.
Whether commission from outside India is taxed under IGST or CGST/SGST depends on the place of supply analysis for intermediary services. One view treats the supply as inter state, attracting IGST; the other treats the place of performance as the supplier's location in Rajasthan, making it intra state and subject to CGST and SGST. Administrative rulings and FAQs have been cited in support of the intra state characterization.