GST on commission received from unregistered foreign airline

Dear sir,  we are getting commission from a foreign air line who is not registered in India against sales of air ticket. Do I have to pay GST on amount received so.
Asked 14 days ago in GST from Delhi, Delhi
Yes, you have to pay GST on commission because the place of provision of services is in India.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
1997 Answers
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Hi

Yes, commission income shall be taxable under GST and 18% GST has to be paid.
Since commission income is an intermediary service, the place of provision of service is in India and you cannot claim the refund of GST considering such service as export of services.
Lakshita Bhandari
CA, Mumbai
508 Answers
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Hello,

Yes, (assuming the tickets are sold outside India/ place of provision of service is outside India) since it is an export of services you will have to be registered under GST Act, pay the due IGST taxes and then apply for a refund.

If it is an Indian Income then No refund can be claimed and you will have to either pay from your own pocket or recover/ charge to the airline. 

You can also apply for a LUT/ Bond and avoid paying GST at all.

Trust the above clarifies.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
581 Answers
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Hello,

How does the entire transaction work out ??? I assume that you are selling tickets within India and generating Income in India. If that is the case then GST has to be charged and paid.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
1764 Answers
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Yes. RCM shall apply. You can claim the ITC of GST paid on such purchase.

Alternatively, you can show the income as commission income and pay GST on commission amount only.
Lakshita Bhandari
CA, Mumbai
508 Answers
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Hello,

GST under RCM for purchase from urd is not applicable till 31st March 2018.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
1764 Answers
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