GST Liability

[Ethirajan Parthasarathy]

'A' in Karnataka is engaged in sale of Rail Pass for tourists to Britain. 'A' will get commission from foreign principal for every pass sold.

'A' engages services of 'B' in Tamil Nadu to co–ordinate with prospective tourists, generate invoice for pass sold and 'B' is authorised to collect some amount from tourist as services fee. 'A' does not pay 'B' any service charges. In other words, 'B' in Tamil Nadu renders services to 'A' in Karnataka but collects fee from person located in Tamil Nadu. The Questions are

Whether 'B' should pay CGST or IGST on processing fee received from tourist.

Whether the commission received by 'A' from foreign company can be treated as 'Export Services'. If not, 'A' should pay CGST or IGST

AI Summary

GST Debate: Should 'B' Pay IGST or CGST+SGST on Tourist Fees? Is 'A's' Commission an Export Service? A business in Karnataka, 'A,' sells rail passes for tourists to Britain and receives commissions from a foreign principal. 'A' uses 'B' in Tamil Nadu to coordinate with tourists and collect service fees. The discussion centers on whether 'B' should pay CGST or IGST on fees collected from tourists and if 'A's' commission is considered 'Export Services.' Responses suggest 'B' should pay IGST for services to 'A' and CGST+SGST for fees from Tamil Nadu tourists. For 'A,' if services are intermediary, GST applies to the commission; otherwise, it might qualify as an export service.