GST - COMMISSION INCOME

[NAREN KHATRI]

Registered Under GST.. and regularly filed return etc.. now received commission from unregistered person from selling their goods directly.. having only commission note.. now what is treatment under GST.. Whether any GST liability arise or not..or.. any other else..??

AI Summary

Commission Income from Unregistered Seller is Taxable Under GST if Exceeding 20 Lakhs Threshold; RCM Exemption Not Applicable. A registered GST participant queried about the tax implications of receiving commission from an unregistered person for selling goods directly. Responses clarified that GST is applicable if the commission income exceeds the exemption threshold of 20 lakhs/10 lakhs. While reverse charge mechanism (RCM) exemptions under Section 9(4) of the CGST/SGST Act were extended until June 30, 2018, this does not apply to commission income. The consensus was that commission received in this scenario is taxable under GST, as the individual acted as a commission agent without purchasing the goods themselves.