commission

[Dinesh Biyanee]

if a person receives commission less than 20 lacs during a year will need GST registration or not.

will he be considered as pure agent ?

AI Summary

No GST Needed for Earnings Under 20 Lakhs; Pure Agent Status Hinges on Rule 33 of CGST Rules, 2017 A query was raised about whether a person earning a commission less than 20 lakhs annually requires GST registration and if they qualify as a pure agent. Responses clarified that no GST registration is needed if turnover is below 20 lakhs. The distinction between a commission agent and a pure agent depends on contractual terms, with Rule 33 of the CGST Rules, 2017 providing guidelines for pure agents. Pure agents incur expenses on behalf of a principal without holding title to goods or services. Section 15(2)(b) & (c) of the CGST Act addresses expenses included in transaction value for GST purposes.