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

Reverse charge: tax due on commission to unregistered agents; input credit allowed if service is for taxable business.
Tax on commission paid to an unregistered person is payable under the reverse charge mechanism, and input tax credit is allowable if the service is availed in the course or furtherance of taxable business; additionally, agents and brokers must obtain GST registration irrespective of turnover, so paying commission to an unregistered agent may breach registration requirements.