Since it is dropshipping model whereby you will never received the goods which shall be directly shipped by the supplier.
Definition of intermediary is contained under section 2 (13) of Integrated Goods and Service Tax Act, 2017 and the same is reproduced here under for ready reference ;
“intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account”
-As per above definition- You are acting as an intermediary i.e. agent.
-Generally in drop shipping, GST is chargeable on profit element I.e. commission income.
The commission income so earned is subjected to GST@18% and all the provisions of GST law is applicable accordingly.
- You need to issue an invoice to the company. If they are paying you a fixed amount and not paying GST in addition, you simply need to do reverse calculation of GST according to the amount so received.
- Basically GST is a collection from customer and not from own pocket.It is upto you how to collect it from customer either by increasing the commission amount or charging GST separately on the current commission.