INTERNATIONAL TRADE BROKER, Goods and Services Tax - GST

[Siddharth Mundra]

Hello Sir/Mam,

I am a trade broker, please help me to understand if i have any gst/igst liability. The buyer is based in dubai for the commodity, The seller is based in germany for the commodity. I get commission monthly and it’s a 12 months contract since I acted as an intermediary in the trade. I will receive money as foreign inward remittance. Do I have to pay IGST on the amount received? Why? neither the buyer, nor the seller is from india. How much Igst i have to pay?

Posts / Replies

[KASTURI SETHI]

No GST is applicable for sale/supply of goods from one non-taxable territory (Germany) to an other non-taxable territory (Dubai) . Your case is different. In your case, you are supplying intermediary services from taxable territory (India) to non-taxable territory (Foreign Country). You do not qualify as export of service. Your service is covered under Section 13 (8) (b) of IGST Act. The place of supply is the location of the supplier of service. Hence taxable and IGST is applicable. Rate is 18% of the amount of brokerage received. Also see the definition of "Intermediary" under Section 2(13) of IGST Act. Case law/decision of AAR/AAAR can be easily traced out to this effect..