Do I charge GST on commission I earn from a foreign company in 2026?

An Indian textile sourcing agent finding suppliers for a European retailer, a recruitment consultant placing candidates for a Singapore firm, or a sales agent earning commission on software licences sold to Indian banks by a US vendor: all of them arrange supplies between other parties and are paid by a foreign principal. Until 2026 GST treated them as intermediaries whose services stayed in India.¹

What changed on 30 March 2026?

Section 13(8)(b) of the IGST Act was omitted. That clause made the place of supply of intermediary services the location of the supplier, which for an Indian agent was India, so the service could never meet condition (iii) of the export definition.¹² The CBIC text of section 13 records the omission by section 157 of the Finance Act, 2026, with effect from 30 March 2026.¹

From that date, intermediary services fall under the default rule in section 13(2): the place of supply is the location of the recipient.¹ For a foreign principal, that is outside India.

When is commission now an export?

Commission is now an export when all five conditions in section 2(6) of the IGST Act hold:²

1. You are located in India.
2. The principal paying you is located outside India.
3. The place of supply is outside India, which section 13(2) now gives for a foreign principal.¹
4. The commission arrives in convertible foreign exchange or in rupees where the RBI permits.
5. You and the principal are not establishments of the same person.

If the principal acts through an Indian office that receives your service, condition (ii) may fail; see foreign clients with an Indian office.

Has the definition of intermediary changed?

No. Section 2(13) still defines an intermediary as a broker, agent or other person who arranges or facilitates a supply between two or more persons, excluding one who supplies on their own account.² What changed is only the place-of-supply rule. The intermediary services guide explains the background and older disputes.

What should an agent do now?

A registered agent should file a Letter of Undertaking for the financial year and invoice foreign principals without IGST from now on; see how to file an LUT. Keep separate records for commission on supplies made before 30 March 2026, which were under the old rule.¹ For past assessments, refund claims or pending notices, take advice from a chartered accountant (CA).