Commission paid to unregistered person under GST

[SURYAKANT MITHBAVKAR]

If we have paid commission to unregistered person can we do RCM and avail input credit. is it allow or not.

[RAMESH PRAJAPATI]

Yes, tax is payable on reverse charge basis. ITC is allowed if service is availed in the course or furtherance of taxable business.

[Himansu Sekhar]

Correct view.

[brijmohan mor]

As per sec 24 ,an agent, broker etc have to compulsorily obtain gst registration irrespective of turnover.then to pay commission to unregistered agent may not be legal.

AI Summary

Debate on GST: Is Commission to Unregistered Agents Eligible for Reverse Charge and Input Tax Credit? Section 24 Implications. A query was raised about whether a commission paid to an unregistered person under GST allows for reverse charge mechanism (RCM) and input tax credit (ITC). One respondent confirmed that tax is payable on a reverse charge basis and ITC is permissible if the service is for taxable business purposes. Another agreed with this view. However, a third respondent noted that under Section 24, agents or brokers must register for GST regardless of turnover, implying that paying commission to an unregistered agent may not be legal.