GST Liability

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..... GST Liability
Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 19-7-2021 Last Reply Date:- 28-7-2021 Goods and Services Tax - GST
Got 3 Replies
GST
"A" in Karnataka is engaged in sale of Rail Pass for tourists to Britain. "A" will get commission from foreign principal for every pass sold. "A" engages services of "B" in Tamil Nadu to .....

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..... co-ordinate with prospective tourists, generate invoice for pass sold and "B" is authorised to collect some amount from tourist as services fee. "A" does not pay "B" any service charges. In other words, "B" in Tamil Nadu renders services to "A" in Karnataka but collects fee from person located in Tamil Nadu. The Questions are Whether "B" .....

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..... ; should pay CGST or IGST on processing fee received from tourist. Whether the commission received by "A" from foreign company can be treated as "Export Services". If not, "A" should pay CGST or IGST Reply By Shilpi Jain: The Reply: The recipient of service for B's service is A. So it should be IGST since the supplier is in TN and the place of supply is Kar. T .....

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..... he services provided by A, the recipient is the foreign principal. Why are you using the reference 'principal'. In case the terms of the contract are such that the services are that of an intermediary, the GST would be liable for the commission received. If not intermediary service and A provides the services actually on his own account then it could be an export of service (more detail .....

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..... on the service required). Reply By ABHISHEK TRIPATHI: The Reply: Dear Sir, Just for knowledge - How is he/she providing rail passes (hope its indian rail passes) to foreign travelers, when the government has discontinued the same? Intermediary situation may become issue in this case. Reply By Ganeshan Kalyani: The Reply: In my view, B is collecting fee from person i.e. tourist located in T .....

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..... amil Nadu. Being B is in Tamil Nadu he will charge CGST+SGST and pay GST. And there is second transaction where B supplies service to A in which case IGST is applicable.
Discussion Forum - Knowledge Sharing .....

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