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.

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.