• Is commission from Merchant trade (goods not touched India tax territory) liable under GST?

Hello,

I am international commodity broker and working for merchant exports. In this business, goods are not getting entered in Indian tax territory. The Indian businessman / merchant trader buys goods from Europe and Supply to Australia. The billing is Europe-India-Australia. I am getting paid as % commission by Indian trader. Following link shows ruling for non applicability of GST on merchant exporter. https://taxguru.in/goods-and-service-tax/gst-not-payable-on-merchant-trade-transaction-aar.html

My question is, Is my commission liable under GST, though goods have not touched Indian tax territory?

Regards,
Himanshu Gajjar
Surat
+[deleted]
Asked 5 years ago in GST

Hi,

Yes, your commission is liable under GST.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi Himanshu,

Hope you are doing well !!

Yes, you will be liable to pay GST@18% on commission income.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi,

- The article you shared talks about taxability of high sea sales. You are acting as an intermediary as per the definition of GST. Determination of liability of GST depends on the place of supply and in your case, place of supply is the location of your place of business which is in India. You will be liable to pay GST @18% on your commission income irrespective goods are not touching Indian territory.

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

Yes, you will be liable to pay GST@18% on the commission income.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

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