IGST ON COMMISSION INCOME

[NILESH PITALE]

Dear Expert

We are Importer and Trading Goods in the Local market, We have to pay Less Amount to the Our Foreign Supplier, We have Accounted Less Amount Under the head Commission Income under balance Sheet, Now Under Department Audit, GST Officer has issued show cause for Leavy IGST Amount on Commission Amount Under Section 13 of IGST Act, (Section 13(8)(B), They are Treating us Intermediary for such Commission . How to tackle , Please Guide

AI Summary

Trader Challenges IGST on Commission Income; Seeks Clarity on Intermediary Status Under Section 13(8)(B) of IGST Act An importer and trader of goods in the local market has been issued a show cause notice by a GST officer for levying IGST on commission income, treating them as an intermediary under Section 13(8)(B) of the IGST Act. The trader seeks guidance on addressing this issue. Respondents suggest verifying the nature of transactions and agreements to determine if they qualify as an intermediary. They advise proving the role as a buyer rather than an agent and clarifying accounting practices. If acting purely as a trader, the commission may not be taxable if the intermediary is abroad.