After GST - Machinery booking on commission

[Asked by Guest]

Hello Sir,

We have a business of booking rice mill machinery, Manufactured by X Company, to rice millers in Andhra Pradesh for which the X company pays commission to me. After GST, can we continue as it is or is it necessary that we purchase from X company and sell it to rice millers.

Thank you.

[KASTURI SETHI]

Sh.Udaya Kiran Ji,

After the implementation of GST, the concept of Service will not abolish. It is subsumed into GST. In my view, it will continue.

Dear Sir,

Thank you for the reply.

[CSSANJAY MALHOTRA]

I fully endorse the views of Sh. Kasturi ji. Taxability of Service will remain in GST Regime also, only change would be substitution of Service Tax with element of CGST/SGST/IGST as per the nature of Supply i.e. Intra / Inter State.

[Ganeshan Kalyani]

Sir, the basis of taxation would shift from service provided , goods manufactured etc. To the term supply. Hence service is taxable if supply is there. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

It is natural, Sir.

[YAGAY and SUN]

Lots of work would be needed to capture the existing transaction into GST regime before its' implementation on 01/04/2017. Just revisit all your transactions whether it is related to goods or services, collect all necessary information/inputs/data/documents and then, make a representation to the Government through FICCI or ASSOCHAM to get the replies and smooth implementation of GST.

[Ganeshan Kalyani]

Sir, the analysis of current transaction in view of current taxation and its impact on upcoming GST is essenial to arrive at a business decision. sThanks.

AI Summary

Taxability of commission as service under GST: commission booking treated as taxable if a supply exists under GST rules.
Commission income from booking machinery is taxable under GST if the transaction meets the supply definition; tax shifts to CGST/SGST/IGST depending on intra or inter state character. Parties must map transactions to GST supply and place of supply rules, collect supporting documents, and consider representations to authorities to secure consistent treatment.