Applicability of GST on Commission

[SUDHIRKUMAR SHAH]

An company maintaining a web site (Network marketing services) in UK and USA name called deal deedy.uk.com., We are getting a various product ( furniture, cloth ) deals form network ( Awin , Brand Review a foreign companies) and paste on our website and any person purchasing the product form our web site than we getting commission form Awin , Brand Review in Foreign Currency .

The Awin and Brand review and foreign company are not related to the a indian company which is maintaining web site in UK and USA.

Whether GST is applicable when amount is received in india by an indian company in convertible foreign exchange. Kindly explain with relevant provisions.

[KASTURI SETHI]

Go through C.B.E. & C. Flyer No. 43, dated 1-1-2018.

[Amit Agrawal]

As readers at TMI are well aware, through my article published & views shared under discussion forum, it is my constant view that no GST is payable by services provided by an intermediary, located in India to the recipient located located outside India.

I held this view because I feel that despite Section 13 (8) (b) & Section 7 (5) of the IGST Act, 2017, above-said services do not fall either under inter-state supply or intra-state supply.

One may refer to my article published on TMI on following link:

https://www.taxtmi.com/article/detailed?id=8346

And my views shared multiple views are this discussion forum. For example: Post ar serial No. 9 under Issue-ID: 116950 bearing subject-line as follows: GST on intermediary service

And my reading & interpretation of judgement given by third member G. S. KULKARNI, J., as reported in 2023 (4) TMI 821 - BOMBAY HIGH COURT says that 'no GST is payable in subject situation, despite holding that Section 13 (8) (b) of the IGST Act, 2017 is legal, valid and constitutional'.

But, one must also note that three judges of Bombay HC have given three different reasonings & thereby, different rulings about GST implications against services provided by an intermediary, located in India to the recipient located located outside India. They have very different interpretations about constitutional validity, Section 7 (5) & 13 (8) (b) of the IGST Act, 2017 & so on, among them.

Hence, it is needless to say & I am well aware that dispute / issues involved are very complex in nature and same will be ultimately settled only by Supreme Court .... sooner or later.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

GST Applicability on Foreign Currency Commissions for Indian Intermediaries Under IGST Act, 2017 Sparks Debate An Indian company operating a website in the UK and USA receives commissions in foreign currency from foreign companies like Awin and Brand Review for promoting their products. The query raised concerns the applicability of GST on these commissions received in India. One response referred to a C.B.E. & C. document, while another argued that GST is not applicable for services provided by intermediaries in India to foreign recipients, citing sections of the IGST Act, 2017, and a Bombay High Court judgment. The complexity of the issue suggests that a final resolution may require a Supreme Court decision.