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 on foreign commission treated as domestic supply; CGST and SGST apply, report in GST return accordingly.
Commission earned by an Indian agent from foreign principals for sales to Indian customers is a taxable service with place of supply in India; the agent must pay CGST and SGST on those commissions even if received in foreign currency, and report the outward supply in GSTR-1 under the appropriate B2C category. The agent is also subject to income tax and should ensure proper invoicing and registration for GST compliance.