GST on commission

[Jasbir Uppal]

Dear Pofessionals, Is GST applicable on commissions paid to associates. For Example :- 'A' is into Direct Selling business like Amway and Vestige. 'A' give commissions to its independent associates on sales generated by him or his team. Commission if is distributed among many people for same sale. 'A' deduct TDS but is GST applicable on this also?

Regards

J S Uppal

[KASTURI SETHI]

GST is applicable on commission. There is exemption on the amount of commission earned from regarding agriculture produce. TDS is part of your gross consideration i.e. transaction value. Hence GST is leviable on the amount of TDS.

AI Summary

GST on commission: TDS counts as part of taxable value, so GST applies on commission including TDS.
GST applies to commissions paid to independent associates as taxable consideration; commissions linked to exempt agricultural produce remain exempt. TDS is included in the gross consideration or transaction value, so GST is leviable on the commission amount inclusive of TDS; deducting TDS does not reduce the GST able value.