GST APPLICABILITY

[SAFETAB LIFESCIENCE]

Hi dear experts,

We are commission agent in Tamil Nadu. We are taking orders for machineries from Indian companies of various states and forwarding to foreign suppliers. Our suppliers are invoicing directly in the name of our customers in India. After all transactions were over, our foreign principals will give us commission about 2 to 3 % of the transaction value. Commission are being received by us in USD or other foreign currencies.

Whether we have to pay GST for the commissions received from foreign principals/suppliers in foreign currencies. If so what is the rate. In our GSTR-1, whose GST details to be given as our buyer. We are not selling anything. Pls clarify.

AI Summary

GST Applies to Foreign Currency Commissions for Indian Agents; Report in GSTR-1 as B2C Transactions. A commission agent in Tamil Nadu inquires about the applicability of GST on commissions received in foreign currencies from foreign principals. The agent facilitates orders for machinery from Indian companies to foreign suppliers, with invoices sent directly from suppliers to Indian customers. Experts clarify that since the agent acts as an intermediary, GST is applicable due to the location of supply and supplier being in India. The agent must pay CGST and SGST at 9% each, and the commission should be reported in GSTR-1 under B2C categories, depending on the commission volume.