Commission

This would depend on whether it is an inter state supply.

If yes, then you need to register n pay GST.

If not, then service recipient shall pay on reverse charge basis.

Yes. For commission agents or persons providing any intermediary services, registration is compulsory.

If you are receiving such goods on complete payment and then selling it off, just like a normal purchase sale transaction, then you may be able to avoid the registration issues subject to the annual turnover limit.

Hi,

In case of intermediary services (I.e. commission income), it is mandatory to get registartion irrespective of the threshold amount.

You need to register yourself and charge GST on your commission.

We can help you in GST registration and filing returns.

Please feel free to reach out to us at

If its a commission income and no other way can be reached out, then undoubtedly you will have to take GST registration.

We may help you in GST registration and return filing. Let us know if anything from our side is required.

The way out of registration can be if you can show purchase sale transactions instead of only commission transactions. In such case, you will be a trader and exemption limit of 20 lakhs will be available.

Your registration was mandatory. Since you did not get registration, the service receiver had to pay GST on reverse charge basis. Such payment by the service receiver does not relieve you from registration requirements.

As per section 24(vii) of the CGST act, you need to compulsory registered under GST.

Reproducing the section for you reference.

24. Notwithstanding anything contained in sub-section (1) of section 22, the following

categories of persons shall be required to be registered under this Act,––

(i) persons making any inter-State taxable supply;

(ii) casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under sub-section (5) of section 9;

(v) non-resident taxable persons making taxable supply;

(vi) persons who are required to deduct tax under section 51, whether or not

separately registered under this Act;

(vii) persons who make taxable supply of goods or services or both on behalf of

other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registered under this

Act;

(ix) persons who supply goods or services or both, other than supplies specified

under sub-section (5) of section 9, through such electronic commerce operator who is

required to collect tax at source under section 52;

(x) every electronic commerce operator;

(xi) every person supplying online information and database access or retrieval

services from a place outside India to a person in India, other than a registered

person; and

(xii) such other person or class of persons as may be notified by the Government

on the recommendations of the Council.

Hello Sir,

No you are not at all required to be registered under GST unless your threshold limit crosses Rs.20 Lacs. So don't worry about GST at all.

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

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